This year planting campaign of winter crops in Ukraine was held under unfavorable dry weather conditions. However, November brought rains benefited sprouts. Now, it is too early to talk about harvest prospects, as the situation will depend on winter conditions. The weather proved itself as a key factor determining crops production volumes, especially when we consider zones of venturous farming that include southern parts of Ukraine. Moreover, recent studies reveal the possibility for part of central Ukraine to turn to zones of venturous farming too in the nearest future due to climatic changes. It can influence on structure of agricultural production in Ukraine. Vladimir Voinikov, the director of Voinikov&Co shared his experience of farming in southern regions of Ukraine.
- How can you estimate the results of harvesting campaign of 2015?
The results are more that positive. Favorable rains facilitated the second highest on record yield for 16 years of farming in venturous zones. Average wheat yield reached 4 t/ha with sunflower as preceding crop. Several fields had 5.2-5.5 t/ha.
Our region is low on water. Extension of main water distribution channels for irrigation purposes from Melitopol to Berdyansk and Mariupol can help the situation. This can help our farmers to invest in irrigation systems, gardens, vegeculture, processing that will promote food security and development of economics of Ukraine.
- What was the quality of the harvested grain?
Grain quality depended on volume of fertilizer applied. We collected the 2nd grade wheat at those fields where we applied 300 kg of ammonium saltpeter in gross weight and feed or the 3rd grade wheat at fields where we applied 150-200 kg of fertilizer. At our farm unit the 2nd grade wheat presented about 50% of total production volume.
- How was the winter sowing at your farm?
Our land bank has 10 thsd ha and 4 thsd ha was planted with winter wheat. Fields were dry as there were no rains during several months. We got the first sprouts in November, so wheat did not formed shrubs before entering the winter. That will led to lower crop next year.
- Were your expenses for panting campaign higher than last year?
Prices for fuel, oil and lubricants, that are dependent on price situation on global market of crude oil, slightly increased in UAH, but declined in dollar equivalent. Seeds prices significantly increased in UAH and stayed stable in dollar equivalent that are common for all imported material and technical resources. Therefore, the cost of planting campaign was the same as last year in dollar equivalent but increased in UAH. Prices for Ukrainian grain depend on those on the global market, so negative impact of national currency devaluation was somehow offset by given factor.
- What area are you going to replant in spring? What crop will you sow?
We hope that we will not replant winter crops. Firstly, let’s see what weather the winter will bring. If the winter is soft we can have good harvest as all planted fields emerged.
However, we have seed fund for replanting consisting of spring barley and peas. These crops are the most suitable for cultivation in zones of venturous farming and have at least marginal profitability. Moreover, we have sunflower seeds in our fund.
- What is you forecast for price development for the second half of 2015/16 MY?
I do not expect significant price increase, as global grain balance is rather good. However, Ukraine keeps on exporting grains, so prices will increase gradually and may increase by 40 USD by spring. UAH prices will depend on currency rate.
- Which trade strategy you consider as the most suitable for farmers?
Each farm has its own strategy. When you got the profit, you have to invest it development of your business. It can bring higher profit in future than product appreciation.
We sold the grain and invested money in modernization of truck fleet, expanding of capacities from 20 thsd tonnes to 30 thsd tonnes of simultaneous storage, purchasing of fertilizers, extension of land bank.
Interviewed by Alina Styozhka
