Planting campaign-2017 - preferences and possibilities of Ukrainian agrarians

Source

APK-Inform

2007

 

Traditionally, before beginning of the spring crops planting campaign, APK-Inform Agency communicated with experts of the leading companies-suppliers of seeds on the Ukrainian market, which reported about the key market trends and preferences of agrarians in choosing of seeds.

 

We asked the following questions to respondents:

  1. What crop seeds were the most popular before beginning of the spring crops planting campaign for the harvest-2017? In Your opinion, what is the major reason?
  2. Were there any changes in the choice of seed varieties (hybrids) of the main grains and oilseeds for the harvest-2017? What factors do influence such choice? Does the price play its role in choosing of seeds?
  3. How do You estimate the price trend on the market of seeds before beginning of the spring planting campaign-2017? Did the situation change compared with last year?
  4. How did the agrarians' preferences in the choice of seeds of domestic and import breeding change during 2-3 recent years?
  5. How did the dynamics of sales volumes of seeds for the harvest-2017 (winter and spring crops) change compared with the same figures 2-3 years earlier (agricultural producers prefer using own-produced seeds, how does the factor influence at sales)?

 

 Sergei Reznichenko, Head of marketing department at DuPont Pioneer Ukraine

  1. In the current year, there is a stable demand for sunflower hybrids, which is not surprising because the oilseed is one of the most profitable crops in our country. Demand for sunflower seed is rather high in both traditional steppe zones, and northern oblasts. In the current year, agrarians are more interested in corn, and many producers understand that in terms of investing in the crop, one should rely on professional genetics, for example Optimum® AQUAmax® hybrids, which provide the maximum harvest results in any fluctuations of moisture supply.
  2. To date, most agrarians understand that only advanced genetics and high-quality seeds can provide the maximum profit. Such professional basis requires modern technologies, which allows reaching competitive results. Therefore, we note the great interest of producers, both agronomists and owners, in our seminars where DuPont Pioneer agronomists consult about modern technologies and specify the right hybrids for application. As for corn, the potential for its yield has crucial role, so many enterprises accept risks and cultivate the hybrids with higher FAO compared with traditional ones at 200-280, which forms the yield figures at nearly 15 t/ha even in the northern part of the Ukrainian "corn belt", but also increases the risk of leaving the high harvest volumes under the snow. Therefore, the ability of hybrids to quickly give up moisture has high significance. The price is also important, because everyone understands that the hybrid of corn which provides the yield at 19 t/ha can not cost 300 UAH for seed unit.
  3. There are no unexpected surprises in price trends. In the current season, the prices for all cost-based materials somewhat increased. But the growth was not significant in comparison with last year, it can be estimated within the range of 3-15% depending on crop, hybrid, novelty, etc.
  4. There are many enterprises which are profitable on hybrids of old types of selection. But there is a steady trend towards orientation to more advanced, professional hybrids. Moreover, it is difficult to draw a line between "import" and "domestic" selection, because the current selection is international phenomenon. DuPont Pioneer and other companies have its own breeding programs in Ukraine, and some parts of the programs which are realized in other countries, take into account the needs and conditions of the main markets, including our country. Therefore, it would be very conditional to separate them from domestic selection processes.
  5. As for soybeans, wheat and other crops, agrarians prefer using own-produced seeds. But if we are talking about the crops our company works with - corn, sunflower seed, sorghum and rapeseed, then usage of commercial seeds is a very fallible pleasure. Therefore, in the reporting market segment own-produced seeds have quite minor influence. In my opinion, such influence is even less than falsification of seeds. Therefore, the main factors that affect the dynamics of seed volumes are changes of the planted areas under crops, either due to market environment, or wintering processes.

 

 Julia Kameneva, Marketing Director for Ukraine and Russia at Monsanto

  1. First of all, there is a great demand for sunflower seed, corn and soybeans. Sunflower is a very profitable crop for several recent years, due to the high price of sunflower seed. During 3 recent years, in Ukraine the planted areas under corn decreased, but sunflower seed areas started growing. The planted areas under soybeans also increased (it is quite profitable crops), but not so actively.

After the period of overproduction of corn, the prices somewhat stabilized and even slightly increased. In Europe, there were low harvest volumes, but Brazil and Argentina compensated the fall. We forecast the growth of corn areas in Ukraine in the current season by nearly 3% compared with the previous year.

  1. As for corn, agrarians prefer using hybrids which are resistant to various stressful environments - air drought, heat and soil drought. Previously, the reporting problems were quite important for southern oblasts of Ukraine, but to date some western oblasts copy the weather conditions of Odessa oblast - the climate has changed for 2 recent years.

We observe the same trends in the south of Poltava, Cherkassy and Vinnytsia oblasts. So, the raions which were considered as corn belt with sufficient precipitations and good soils, started shifting into stressful environment conditions. Therefore, the demand for heat and drought-resistant hybrids of corn started growing. The share of such hybrids in the sold volumes by our company is constantly increasing.

Of course, the price plays its role. In terms of such stressful environment conditions, the harvest volumes are often low, and do not justify investing in seeds while the yield of expensive and cheap corn hybrids is approximately equal within 6-7 t/ha. Therefore, we present new hybrids DEKALB, heat and drought-resistant, which are able to give a sufficiently high yield - more than 8 t/ha, even in stressful conditions. Plus, we propose a number of solutions for agrarians which provide high yields in dry weather conditions – crop dressing, satellite monitoring of field conditions and correct selection of hybrids, etc.

  1. The price situation on the corn seed market did not significantly change in comparison with last year, in general - the prices remained at the same level.
  2. As for corn, during 2-3 recent years the situation did not change much: seeds of import breeding form nearly 60% of the market, and domestic seeds form nearly 40%, with slight fluctuations from year to year. Agrarians' preferences mainly remain unchanged.

At the same time, some seeds of import breeding are produced in Ukraine: for example, Monsanto produces and processes nearly 50% of corn seeds for the Ukrainian market in the country. And many international companies started increaseg the share of domestic production of seeds of import selection.

 

 Comment of Suzanna Grigorenko, Executive Director at the Seed Association of Ukraine

The planted areas of winter crops for the harvest-2017 are approximately at the same level as in the previous period. Ukraine did not increase the figures due to climatic conditions.

According to preliminary data, agrarians will re-plant nearly 30% of winter crops, and 20% of winter rapeseed.

In terms of re-planting works, profitable crops mainly form the conditions: sunflower seed, corn, peas; the interest in soybeans slightly reduces, the supply from the countries of South America regulates the demand.

The choice of crops and planted areas depends on the expected market prices in relation to production costs, weather conditions and possible diseases before and during the vegetation period. In addition, it depends on the forecasting of prices for which also depend on the situation on export markets: the UAH/USD exchange rates, the weather conditions in countries-consumers and countries-competitors, development of production, etc.

 

Interviewed by Julia Shevchenko, APK-Inform Agency

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