MONTHLY ISSUE ABOUT AGRO MARKET 2010 December No. 7
AGROMEDIA
This issue Grain and rapes market Milk economy market Fertilizers market Agro technique market
Lithuanian position due to communiqué to be imposed on CAP after 2013 On 18 November, the European Commission announced communiqué related to Common Agricultural Policy (CAP) after 2013 “Common Agricultural Policy on the eve of 2020”. CAP reform, launched in 2003, is continued with this communiqué. The reform has sought to direct agriculture more to market needs, modernize it and adapt to quickly changing market conditions and new challenges. While reforming CAP, it has been sought to make European agriculture sector more dynamic and competitive, that it could further the implementation of strategy “Europe 2020” – to prompt stable, progressive and integral growth more actively. Having evaluated the communiqué, the Ministry of Agriculture has defined certain intended Common Agriculture Policy changes that could be useful to Lithuania, though there are some particular provisions that are raising doubts. Under Lithuanian request, in the part of communiqué which describes market regulation, it is predicted that unit of market regulation means should operate as a reliable safety net. It is predicted that interventional purchases of products and private protection could remain. Lithuanian objectives to refuse historical referential indexes when counting the direct support are also predicted by the communiqué. There are some references about more proper distribution of direct support among member states, though the offered methods and transition periods force to think that “two different speed Europes” may be tolerated for some time, i.e. old and new EU members are separated. Lithuanian stands that in order to assure honest competition between member states, the level of direct benefits in European Union should be defined following the objective criteria that would assure the clearness of support level, prompt agricultural production in all the EU. Lithuania expects more attention from the European Commission towards simplification of direct support rules.
Lithuania agrees with many communiqué aims, such as: • CAP should remain strong common policy, comprised of two supports (direct support and market regulation means and rural development) in future; • Assurance of food provision; • More proper distribution of direct support to assure farmers’ income and more orientation towards public goods, such as environmental protection, animal welfare, fostering of landscape, protection of cultural heritage etc.; • Direct support should focus on the increase of competition, innovations, stable management of natural resources, climate change, environment, balanced development of territorial rural places; • CAP should be oriented towards market needs, keeping particular market regulation instruments, such as stability guarantee in case of crisis. Also it is planned to seek for simplification of market regulation means; • Balanced territorial development; • Perfection of food chain; • Simplification of rural development means.
GRAIN AND RAPES MARKET Procurement prices on wheat, feeding barley and rape continue to increase in Lithuania. Lithuanian grain procurement companies have bought wheat at the average price of 634.1 LTL/t in the second part of November, 2010 (46th week (15-21 11)). Compared to the second part of October (42nd week (18-24 10), wheat procurement price has increased by 3.8%. Feeding barley (II class) average procurement price has increased by 8.6% (to 571.9 LTL/t) during the analysed period. Rape procurement price that has boomed since the beginning of harvest, started to decrease during the recent weeks – it has decreased by 16.4% (to 469.7 LTL/t), compared to the prices of 46th and 42nd weeks. Average buckwheat procurement price, which has increased to its absolute height – 1938.2 LTL/t, was smaller by 10.9% during the last week and amounted to 1727.8 LTL/t. Rape procurement price, the same as wheat, continues to increase. Compared to the procurement price of 46th and 42nd weeks, it has increased by 8.2% (to 1328.9 LTL/t). In Lithuania, grain import was 4.5 times bigger, and export – 28% smaller in October, 2010, than in October, 2009. Lithuanian grain procurement companies have imported 1850 thousand tons of grain in this October. Wheat made the biggest part (8.997 thousand
tons) of imported grain. They were imported from Latvia and Denmark at the average price of 616.3 LTL/t. Barley (751 tons) was also imported from Latvia and Denmark (average price – 614.4 LTL/t). Maize (2.055 thousand tons) was imported from Hungary and Ukraine at the average price of 558 LTL/t. Rape import has twice increased in October, 2010, comparing with October, 2009 – to 21.484 thousand tons. They were imported from Latvia, Russia and Ukraine at the average price of 1299.5 LTL/t. 171.486 thousand tons of grains were exported this October. 81% of them (139.675 thousand tons) were wheat. They were exported to Latvia, Denmark, Holland, Germany, France, Portugal, Finland, Switzerland, Norway, Saudi Arabia and Libya (average price – 747.1 LTL/t). Barley (12.289 thousand tons) was exported to Latvia, Estonia, Finland and Denmark at the average price of 452.3 LTL/t. Triticale (18.255 thousand tons) was exported to Spain, Finland, Sweden and Libya (average price – 416.0 LTL/t). Rape export has increased by 15% - to 44.031 thousand tons in October, 2010, compared to last October. They were exported to the following EU states: Latvia, Estonia, Germany, Belgium, Denmark and Finland (average price – 1128.1 LTL/t).
24 million tons of wheat harvest is expected in Australia in 2010– 2011 In November forecast by USDA, Australian wheat harvest forecast, compared with the one of October was raised by 1 million tons (to 24 million tons). Compared with last year, wheat harvest would be 7% bigger and it would be the biggest harvest during the recent four years. The productivity of land is predicted to reach 1.8 t/ha – 10% bigger than during 2009-2010. This season there were perfect meteorological conditions for corny plants in the main Australian wheat growing regions (New South Wales, Queensland, Victoria and South Australia). Wheat crop condition in the Eastern
region of Australia has been the best during many years. Though, West Australia announces that it has been one of the worst seasons for wheat and other winter crop during the last 40 years because of drought and temperature, higher than usual.
According to the data by the Department of Statistics, procurement prices of agricultural products have increased by 23.2% in October, 2010, compared with the same period in 2009. During this year, procurement prices of crop products have increased by 39.3%, animals and stock-raising – by 12.3%. Talking about crop production products, prices of buckwheat (3.1 times), rye (2.5 times), triticale (2.3 times), corn (2.2 times), barley (71.8%), pulse grain (69.3%), wheat (60.7%), potatoes (59.3%), rape seeds (42.3%) and vegetables (40.5%) have increased the most. Among animals and animal products, procurement prices on sheep and goats (45,1 %), natural milk (44,2 %), livestock (15,9%) have increased. Prices on birds have decreased by 24.6%, eggs – 20.7%, pigs – 13.4%. During one month (October, 2010, compared with September, 2010), procurement prices of agricultural products have increased by 6 percent, because procurement prices of animals and stock-raising have increased by 5.4%, procurement prices of crop production – by 4.7%. Talking about crop production products, prices of corn mixes (36.2%), barley (22.4%), buckwheat (17.1%), corn (16.1%), triticale (16%), pulse grain (14.7%), potatoes (9.4%), rape seeds (3.4%) and wheat (3%) have increased the most. Prices of maize have decreased (13.5%). Talking about animals and stock-raising, prices of natural milk (12.2%), livestock (10.6%) and birds (0.9%) have increased. Prices of pigs (8.7%), eggs (1.4%), sheep and goats (0.7%) have decreased. Procurement of pulse grain (47%), potatoes (19%), pigs (16%), birds (14%) and fruits (11%) has increased during January-October, 2010, compared with the same period in 2009. Less purchasable were corn (23%), livestock, sheep and goats and eggs (at 3%), natural milk and vegetables (at 1%).
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More than three times smaller grain harvest in Russia, 2010 According to the Ministry of Agriculture of Russia, total grain harvest in the state should reach 64.2 million tons in pocket weight, and 60.3 million tons – in valid weight. Compared with 2009, it would be 35.5% smaller than the previous year. At the end of this October, the Ministry of Agriculture informed that transitional grain resources in the state amounted to 26.3 million tons on 1st July, 2010, so total grain amount together with this harvest should reach 86.6 million tons. 77 million tons of grain are consumed in Russia per year, so according to tentative data, grain resources should make 13 million tons at the end of harvest year. It is predicted that wheat harvest in Russia will amount to 42 million tons in 2010 – 31.9% smaller than in 2009. Grain import could reach 3.9 million tons (2.2 million tons of wheat and 1.7 million tons of other grain), and 3.5 million tons of wheat are believed to be exported later. According to the data by the United States Department of Agriculture (hereinafter – USDA), in Russia, 2010, total harvest of maize, rye and corn has dropped down to 17.3 million tons, because of smaller crop areas and their smaller productivity. Compared with harvest of 2009, this is 46% less. Crop area of these corn for 2010 harvest was
smaller by 12% (from 15.9 million hectares to 14 million hectares), compared with 2009, and productivity decreased form 2t/ha to 1.24 t/ha. In Russia, this year barley harvest has amounted to 8.5 million tons (17.9 million tons in 2009), maize – 3 million tons (4 million tons), rye – 2.1 million tons (4.3 million tons), and corn – 3.5 million tons (5.4 million tons). Most of these grains (from 70 to 90% of barley, maize and corn, and only 15-30% of rye) are used for feeding. Since 1987-1988, crop areas of these sorts of corn has decreased by about 60% because of declining amount of animals during the decrease of grain demand. Though the number (especially poultry and pigs) of some animals started to grow during the latter years, usage of feeding grain remained stable. That was influenced by unfavourable barley prices in 2010 during spring sowing. Because of this, barley crop areas were smaller by 20% for 2010 harvest. However, the main reason that influenced the decrease of barley, maize, rye and corn harvest in Russia, 2010, was drought and high temperature in Volga valley neighbouring regions during almost the whole growing season. Despite unusually hot summer and drought, Russia is going to be fully provided with grains.
NOVOROSSIYSK, RUSSIA — The Novorossiysk Commercial Sea Port Group reported on Oct. 18 its consolidated operating re-sults for JanuarySeptember 2010. In the reporting period, NCSP Group's cargo turnover amounted to 62.6 million tonnes, which is 3.9% (2.574 million tonnes) less than in the same period of 2009. Export of grain from the Russian Federation was officially banned from Aug. 15, which conditioned the total decrease of grain volumes in the reporting period by 962,900 tonnes versus same period last year. Commenting on the operating results for January-September of 2010, Chief Executive Officer Igor Vilinov said, “Over the last nine months NCSP's overall volumes dynamics were shaped by two major factors. On the one hand, the grain export ban alone resulted in losing almost 1 million tonnes of cargo traffic. On the other hand, volatile crude oil volumes also affected the total turnover in a negative way”. “When viewing NCSP operating performance isolated from these two factors, we can speak of stable cargo volumes and posi-tive changes in the cargo mix, such as growing share of priority cargoes, including containers, which nearly doubled in volume”.
Worldwide grain export prices Lt/t Grain State Wheat JAV HRW 2 kat. JAV SRW 2 kat. Argentina ES, France, FCW 1 ES, Germany, B class ES, United Kingdom, forage
Corn Barley
Canada, CWRS 13,5% protein JAV 3 YC Argentina ES, France, forage Australia, forage Australia, malting
2009 2010 october august september october 496,9 774,8 731,5 738,1 440,9 734,1 721,3 710,6 501,6 769,4 777,4 725,6 445,4 773,4 770,0 740,6 457,3 810,2 787,6 753,1 403,6 652,5 639,8 660,5
Price change % mounth ** year *** 0,9 48,5 -1,5 61,2 -6,7 44,7 -3,8 66,3 -4,4 64,7 3,2 63,7
653,2
916,2
917,6
930,8
1,4
42,5
410,6 394,3 366,3 352,3 417,6
543,7 554,6 655,2 679,7 744,9
586,3 576,0 685,7 655,1 785,1
635,5 635,5 648,0 635,5 743,1
8,4 10,3 -5,5 -3,0 -5,3
54,8 61,2 76,9 80,4 77,9
Data sourse: Agro rinka, No. 22 (149)
Explanation of Tables: HRW – Hard Red Winter, SRW – Soft Red Winter, FCW – French Channel Wheat, CWRS – Canada Western Red Spring, YC – Yellow Corn * prices (Lt) provided based on the currency exchange of the Bank of Lithuania on the respective date ** comparing Septembert with August, 2010 *** comparing September, 2010 with September, 2010
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U.S. corn crop down 4% from September U.S. 2010 corn production was fore-cast at 12.664 billion bushels, down 4% from 13.16 billion bushels forecast in September and down 3% from a record 13.110 billion bushels in 2009, the U.S. Department of Agriculture (USDA) said in its Oct. 8 Crop Production report. Soybean production was fore-cast at a record 3.408 billion bushels, down 2% from 3.483 billion bushels forecast in September but up 1 % from 3.359 billion bushels last year. The USDA com production number was below the average pre-report trade estimate of 12.95 billion bushels. The USDA soybean number also was below the trade average of 3.491 billion bushels. Based on Oct. 1 conditions, com yield was forecast at 155.8 bushels an acre, down 6.7 bushels from the September forecast and 8.9 bushels below the 2009 record of 164.7 bushels an acre, the USDA
said. Corn area harvested for grain in 2010 was forecast at 81.3 mil-lion acres, up slightly from September and up 2% from 2009, the USDA said. Soybean yield based on Oct. 1 conditions was forecast at a record 44.4 bushels an acre, down 0.3 bushel from September but up 0.4 bushel from the previous record high of 44 bushels in 2009. Harvest-ed area was forecast at 76.8 million acres, down 1% from September but up 1% from 2009. The 2010 rice crop was forecast at 242,260,000 cwts, down 5% from 255,319,000 cwts forecast in September but up 10% from 219,850,000 cwts in 2009. Sorghum production in 2010 was forecast at 337,229,000 bushels, down 10% from 376,469,000 bushels in September and down 12% from 382,983,000 bushels in 2009, the USDA said.
Russia extends grain export embargo to July 2011 Russian Prime Minister Vladimir Putin announced on Oct. 22 that Russia has decided to extend its grain export embargo until July 2011. On Aug. 5, in response to Russia's drought and wild fires, Putin announced that he had signed a temporary ban on the export of wheat, meslin, barley, rye, maize, wheat and wheat-and-rye flour from the Russian Federation.
In an interview with the Ogoityok magazine, Arkady Zlochevsky, head of the Russian Grain Union, said he was sure Russia would remain in last year's third position in the rating of the world's top grain exporters, and perhaps ascend even higher. The embargo, however, has severely damaged Russia's image of a reliable food exporter, he noted.
Noble Group opens grain terminal at Port of Santos The Brazilian State Port Author-ity Codesp announced in mid-October that Hong Kong-based Noble Group has opened a 100-million-real ($60.7 million) grain terminal in the Brazilian Sao Paulo state's Port of Santos. The 10,000-sriuare-uieter terminal has a storage capacity of 90,000 tonnes of sugar, soybeans, corn and soybean meal, and it is expected to handle a total of 2.3 million tonnes per year. Codesp said that since test operations began in July, over 600,000 tonnes of commodities, especially sugar, have been handled at the terminal. With the new terminal, the company
expects to increase its rev-enue in Brazil to over 1 billion reais this year, at least a 57% increase from the 637 million reais posted in 2009. Noble Group also expects to further expand its operations at the port, according to company founder Richard Elman. Codesp said Noble has invested 1 billion reais in infrastructure projects in Brazil. The group is currently building a soybean crushing plant in Mato Grosso state. "We are expecting to surpass 20 percent annual growth (in Brazil) in the coming years. Brazil looks very promising," Elman said.
Salim, Seaboard enter into partnership Two of the world's largest grain processing companies have become partners in Australian-based pool manager and grain accumulator Plum Grove, the companies an-ounced on Oct. 12. Indonesian-based Salim Group, U.S.based Seaboard Corp, and Plum Grove have jointly reached agreement to enter into an Australian-based partnership that aims to bring Australian growers and international customers closer together. The Salim Group is historically a large buyer of Australian wheat, mostly from Western Australia. Seaboard Corp., through its Commodity Trading and Milling Division, owns flour milling and other grain processing operations throughout Africa, South America and the Caribbean. Plum Grove Executive Chairman Andrew Young said the new partnership would create a two-fold benefit for Australian growers. First, it would open more direct channels between Australian grow-ers and one of the most significant end users of their product, and secondly, it would open the door for Australian wheat to enter previously uncharted markets throughout Africa. "Both Seaboard and the Salim Group see the investment in Plum Grove as an opportunity to participate in an alternative model that promotes transparent contact between customers and growers." he said. "Unlike recent major transactions involving multinational entities in the Australian grain industry, this partnership involves consumers who have significant processing exposure seeking to form a direct relationship with growers."
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Procurement price on raw milk by Lithuanian milk producers has increased in this III quarter in Lithuania. Lithuanian milk buyers have bought 412.75 thousand tons of natural fatness raw milk from Lithuanian milk producers in III quarter of 2010 – 2.55% more than in the same period in 2009, but 4.62% less, compared with the same period in 2008. Average procurement price on this milk from Lithuanian milk producers made 816.16 LTL/t this III quarter and was 49.78% higher than in the same period in 2009 and 2.27% higher than III quarter in 2008.
MILK ECONOMY MARKET Average natural milk procurement price LTL/t Lithuanian biggest milk shoppers
Name of a company
Average natural milk procurement price, LTL/t Milk, for witch Milk, for witch Average deductions due any deduction milk proto quality were due to quality curement not applied was applied price when paying when paying
AB "Pieno zvaigzdes" companies group
1042,4
762,1
1035,3
UAB "Marijampoles pieno konservai" AB "Rokiskio suris" companies group
944,1 1005,5 1009,4
724,3 841,2 836,8
940,1 999,3 1003,2
939,9 933,3 1274,8
703,3 1133,3 -
928,2 978,5 1274,8
760,8 854,8 997,3
636,1 606,6 809,4
760,6 846,5 990,4
AB "Zemaitijos pienas" UAB "Vilkyskiu pienine" AS (Agricultural society) "Salteksnis" UAB „Vikeda“, Kedainiai Bariunai AS (Agricultural society) Joniskis district Dairying cooperative "Zalmarge" Average milk procurement price, LTL/t
853.06 thousand tons of milk of average fatness of 3,99% were sold for confirmed milk procurement companies during seven months of 2010-2011 quota years (from 1 April to 1 November, 2010). Having transferred the value into national defined 3.99% milk fatness, the amount comprised 861.43 thousand tons. 50.75% of sales for processing quota (hereinafter – SPQ) were implemented during seven months of quota years. Compared with the same period during 2009-2010 quota years, implementation of SPQ has decreased by 6.84%, i.e. more than 13.1 thousand tons. During seven months of quota years, implementation of total national milk extraction quota, defined for Lithuania, is 50.75%.
Prices on many milk products has increased in Latvia and Estonia during III quarter of 2010 Latvian milk buyers paid 87.13 LTL/100 kg at average in III quarter of 2010 – 57.00% more than in the third quarter of 2009. Procurement amounts of natural fatness raw milk have increased by 11.35% and amounted to 144.63 thousand tons in III quarter of 2010, compared with the same period in 2009. Sale-prices (producer price) of milk products, produced in many Latvian companies, have increased because of increased average procurement price on natural fatness raw milk in the state. For example, average sale-price (producer price) on semirigid cheese, which was 10.49 LTL/kg in III quarter of 2009, increased to 14.05 LTL/kg, and price of skim milk powder increased by 52.36% - to 8.59 LTL/kg. In III quarter of 2010, compared with the same period in 2009, average sale-price (producer price) on butter, produced by state milk processing companies, increased by 24.94% and made 13.48 LTL/kg, and unskimmed milk powder – 24.23% (to 11.89 LTL/kg). In III quarter of 2010, compared with the same period in 2009, in
Estonia, natural fatness raw milk was bought at 45.15% higher price and its average procurement price amounted to 97.23 LTL/100 kg. 157.10 thousand tons of natural fatness raw milk were bought in Estonia during the analysed period – 0.38% less than in III quarter of 2009. Higher procurement price on raw milk influenced higher prices of many milk products. Average sale-price (producer price) on skimmed milk powder, produced in Estonian companies, increased by 44.86% (to 8.11 LTL/kg), and butter (82% fatness, 25 kg lump) – 11.23% (to 8.65 LTL/kg) in this III quarter, compared with the same period in 2009. During the analysed period, average sale-price (producer price) on unskimmed milk powder reached 11.39 LTL/kg and was 82.98% higher than in the same period in 2009. 5
Requisitions to participate in milk quotas trade auction are already accepted Farmers, who are not using all milk quotas, may sell them to other milk producers during an auction. Agricultural Information and Rural Business Centre reported that requisitions for Milk Quota Trade Auction of March, 2011, are already accepted. Agricultural Information and Rural Business Centre informs that requisitions are accepted until 31 December. According to the presented information, requisitions should be submitted to Agricultural Departments of those municipalities, where agricultural domain centre is registered. Only those farms, which are registered in the territory of Lithuania, may buy and sell quotas. According to official informational statistical publication “Agro rinka” (“Agro market”), there were
48846 holders of quotas in the state on 1 November, 44736 (91.6%) of which disposed with selling to process quota and 5260 (11.8%) – selling for direct use quota. 1150 producers, i.e. 3.3% of all quota holders, disposed of the quotas of both types. On average, 28.7 tons of milk quotas are imposed on one quota holder in Lithuania. The sum of disembodied additional national direct benefits for milk in 2010 for 58641 producers this year was 116.781 million LTL. Disembodied additional national direct benefits for milk in 2010 are paid for the amount of milk, given for factual market in 2006-2007 quota years. The amount of benefit is 87 LTL for the sold ton of milk.
SMP demand revives, prices firmer EU markets continue to steady, with SMP and whey powder prices now rising after falling since late September. Food-grade prices are down to 20% above interven-tion, having dropped by 15% since late September. Feed-grade prices have fallen by slightly less but are still at a €200/t discount to food-grade SMP. Demand has risen, with customers both within and outside the EU seeking to cover first quarter supplies. Exports have benefited from a fall in the € in the past fortnight. Butter prices have dropped by 5% since September to around 65% above inter-vention—now falling by around 1% a week. Butter prices range from €3,500/t - €3,700/t with forward prices into next year slightly lower. EU butter is still €400/t too expensive for exports to pick up. Prices for cream and skim concentrate were rising last week, with output across the EU at its seasonal trough and demand rising for cream and fresh products in the run up to Christmas. Cream is now at a significant premium to the return from butter or
WMP manufacture. Production of WMP has been low, and the decline in WMP prices has now virtually stopped, with production at its seasonal trough, with EU WMP still at a premium to NZ supplies. Prices are, however, €400/t lower than the May peak. Whey powder prices, always volatile, are now close to a year ago. Cheese prices are unchanged with good demand, particularly from Eastern Europe. Cheese returns remain better than butter/powder and cheese production is likely to continue to grow. French milk supplies were still 7%-8% up on a year ago in early November, and up 3%-4% in Germany. Outside of the Baltic States, where milk prices are 50%-60% up on a year ago, milk supplies in Eastern Europe were still below a year ago into the autumn. Milk production across the EU is starting to increase seasonally, creating some uncertainty over whether future market trends will be up or down: that will largely depend on whether the world market remains balanced.
As the website “Mano ukis” (“My Farm”) announces, American cows growers develop vaccine against E. coli bacteria (group of E. coli bacteria is large and various; part of it may cause diarrhoea, respiratory infections and other diseases), and the results of first experiments are promising. International food company “Cargill” announced the first results after the test of new vaccine, during which 85 thousand livestock were vaccinated. According to Dan Schaefer, vicepresident of the company, animals’ immune system reacted to vaccine positively in the Department of Beef Research, and comparatively small amounts of E. coli varieties, dangerous for people, were found in organisms of cows. Though, the scientist emphasizes that the livestock that was not vaccinated had small amount of bacteria. According to D. Schaefer, the amount of the bacteria is influenced by the weather, life conditions, vaccine dosage and other factors. Other USA producers also perform similar tests. Chandler Keys, representative of the company “JBS USA” claims that the company is about to complete its experiments with 200 thousand of vaccinated animals, and expects to have results next month. According to the data by the National Centre for Disease Prevention and Control, more than 73 thousand of people caught E. coli bacteria in USA and more than 600 cases were deadly.
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Demand and supply in some sort of balance Prices barely moved at Fonterra's GDT auction last week, with the overall trade weighted index down marginally. Cheese and butter spot market prices have changed little in the past fortnight but powder prices were down $100/t with SMP falling the most. Overall spot prices have been stable since June and coupled with the GDT forward auction prices, world demand and supply would appear to be in balance. NZ's milk supplies are not rising as quickly as thought. Production is now past its seasonal peak, with early season supplies at about the same level as a year earlier but still only expected to be l%-2% up for the season. Australian production has
also been low. Demand has been rising in 2010, with China importing 240,000 t of WMP from Jan-Sept, up 90%, and Russia importing 210,000 t of cheese, up 25%. Exports of US NDM/SMP were 45% up on a year earlier Jan-Sept at 270,000 t, with large rises in exports to SE Asia. Butter and cheese prices have fallen with more exports expected, especially for US Cheddar—at $ l,000/t discount to NZ prices, and still being sold with CWT subsidies. For the first 9mths of 2010 the US exported 128,000 t of cheese, up 64 %.
Global certain dairy products price LTL/kg Product name
Average price USA CME, FOB 2009 46 week (11 09-13)
Butter, AA
2010 45 week 43 week (10 44 week 46 week (08 30-09 25-29) (11 01-05) (11 08-12) 03)
Change % week
year
7,87
12,41
11,5
10,93
10,91
-0,17
38,61
8,11
9,42
8,35
7,68
8,00
4,18
-1,33
LMP, Central and Easten region, FOB
6,63
7,07
6,71
6,76
6,92
2,39
4,29
NPA, Nacional, FOB
7,64
9,60
9,21
9,25
9,47
2,39
23,91
Whey powder, Central region, FOB
1,87
2,02
1,94
1,94
1,99
2,39
6,63
Cheese Cheddar tipe, units
CME
Western Europe exports, FOB 2009 44-45 week (10 26-11 06)
2010
Change %
42-43 week (10 18-29)
44-45 week (11 01-12)
2 week
year
Butter, 82% fat.
10,64
14,12
12,94
-8,33
21,67
WMP
7,29
8,05
7,01
-12,93
-3,74
SPM
8,56
10,14
9,05
-10,76
5,77
Melted butter
10,99
15,37
14,09
-8,33
28,33
Whey powder
2,49
2,49
2,29
-8,33
-8,05
Milk deficit in Serbia became one of the most relevant state’s problems that are already being solved by the Government, while the media predicts resignation of the Minister of Trade. In many shops, shelves of milk products are empty. The lack of milk is felt because Serbian farmers sold 80 thousand of milch cows to abattoirs this year due to the crisis. Besides, state has reduced reduces benefits to milk producers, the state has suffered drought. According to the media, Serbian milk processing concern “Imlek”, reprehended by government for monopolistic activity and deliberate decrease of milk procurement prices, is also negatively related to the milk crisis in the state. Belarus exports fill gap As a consequence of the summer drought, milk production in Russia this year will fall by 2.3% and will continue to decline in 2011—and imports will rise sharply. The USDA reckon that Russian SMP imports will reach 190,000t this year, three times the expected figure before the drought. Belarus are apparently covering most of the growing import demand. They supplied 30% of Russia's cheese imports in the first 7mths of this year, 46% of butter imports,75% of milk powder imports and 89% of liquid milk imports. The NZ government have opened negotiations for a bilateral trade agreement with Russia to allow NZ produce access without the import tariff that was recently raised to 15%.
Oceania exports, FOB 2009 44-45 week (10 26-11 06)
2010
Change %
42-43 week (10 18-29)
44-45 week (11 01-12)
2 week
year
Butter, 82% fat
7,23
11,73
11,12
-5,17
53,87
WMP
6,82
8,36
7,54
-9,81
10,48
PM
7,29
9,44
8,65
-8,33
18,73
Cheese Cheddar tipe
8,44
11,05
10,26
-7,21
21,50
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FERTILIZER MARKET European fertilizer prices Belgium - €/t bulk CAN 27% del retail KCI (G) fot ex-store DAP fob/fot bulk $ France- €/t bulk AN 33,5% gran del AN 33,5% prill fot bgd Urea prill fot Urea gran fot DAP fot KCI gran fot Germany - €/t bulk CAN cfr imp inland Urea prill cfr 15-15-15 cif inland DAP fot seaport Ireland - €/t bagged Urea gran del CAN 27,5% del 27-6-6 del Italy - €/t bagged Urea gran fot Urea prill fot CAN (27%) fot DAP fot Netherlands - €/t bulk Can cif del inland KCI (G) fot ex-store Spain - €/t bulk CAN 27% fot Urea prill fot DAP fot 15-15-15 fot United Kingdom - £/t bagged AN 34,5% del farm AN cif import Urea prill cif bulk Urea gran cif bulk DAP cif bulk Baltics - US $/t
26 November 243-252 322 608-612
12 November 243-252 322 605-610
310-315 275-285 320-325 335-340 450-455 320-323
270-310 275-287 n.m. 305-315 430-435 320-323
230-239 285-286 325 449-450
230-239 275-276 320 440-443
280-282 298-300 285-287
n.m. n.m. n.m.
335-340 320-325 250-255 450-455
335-340 320-325 250-255 440-445
230-235 322-323
230-235 322-323
250 315-320 440-445 320-325
250 305-310 420-428 320-350
290-295 270-275 255-265 285-295 393-395 28 October
287-294 270-275 250-255 280-290 380-385 14 October
Urea prilled bulk
362-365
350-360
Ammonium Nitrate prilled UAN 32%N DAP MAP
280-295 265-280 567-573 567-573
265-275 265 540-568 540-568
KCI standard grade
396-403
409-417
Nitrate prices have moved up yet again; AN prices in France have risen by another €5/t and AN in the UK by £12/tonne. Yara also announced higher prices for CAN taking the price to €243 cfr bulk delivered inland. Nitrate markets however are generally pretty quiet but prices are very firm. Behind this are strong urea prices with granular trading in Egypt at $410 fob although demand for December could be fairly thin with limited interest today in Europe and fading prices in a quiet US market not supporting levels of $400 let alone $410. UAN markets are quiet although there has been some demand in Spain with about four cargoes booked taking tonnes from Egypt and Romania. Phosphate buyers appear to be returning to the market with fresh sales into Italy after several months of abstinence and we could see French buyers follow on next week. Higher potash prices are still expected as of 1 January but exact increases have still to be determined.
Data source: Fertecon European Fertilizer Fax, 26 November 2010
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AGRO TECHNIQUE MARKET Belarus will supply milk powder and tractors to Venezuela According to “Mano ukis” (“My Farm”), on Monday, Nicolas Maduro, Minister of Foreign Affairs of Venezuela, announced that Belarus will supply milk powder and agricultural machines to Venezuela, informs “RIA Novosti”. With the agreements, signed in Caracas, Belarus has obliged to supply 16 metric tons of milk powder, 570 tractors and hundreds of trucks to Venezuela. N. Maduro has also claimed that Belarus will also help Venezuela build three agro-industrial complexes. He has added that Belorussian specialists
are already working in house constructions of 7000 poor Latin American families. Collaboration between Belarus and Venezuela became more intensive, when the President of Belarus Alexander Lukashenko turned to the West and started looking for alternatives for Russian oil supply. Oil from Venezuela is transported to port of Odessa in Ukraine, later – to Belarus by railway. One more agreement for oil supply was signed during the President of Venezuela Hugo Chavez visit in Minsk in October.
New generation of tractors The most powerful tractor Same Deutz-Fahr of CVT series has been granted the most honourable place in company‘s stand in EIMA agricultural exhibition in Italy that was opened this week. Named as Deutz-Fahr TTV 7.260, the tractor reaches 260 horsepower, using newly created 6-cylinders turbo diesel engine Deutz TCD 6.1 with intercooler, four-valve technology and Deutz Common Rail fuel injection system. It is not only the biggest CVT DeutzFahr tractor, it is also one of the first company‘s tractors that meet the newest standard of Stage 3b engines created on the basis of SCR (Selective Catalytic Reduction) technology. According to the editorial office of “Savas ukis”(“Own Farm”), it is the first step towards saving energy, because the roof of tractor cabin will be covered with solar ele-
ments that will produce energy for cabin’s electronics. These elements are believed to be sufficient in sunny climate zones to generate the required amount of energy to ventilator in the tractor’s cabin even when tractor and ignition are shut down, and if required, to load mobile phone without any bigger problems. It should also be mentioned that farmers, whose fields are at bigger distance, will appreciate this tractor. With the help of this tractor, it will be easier to take longer distances as the speed of the tractor reaches 60 km/h.
Editorial: AB “Agrowill Group”, Smolensko g. 10, Vilnius Tel./fax +370 5 2335340; +370 5 2335345; e-mail: info@agrowill.lt Subscribe to free updates in the website www.agrowill.lt
In the middle of October, Dutch machines Vervaet Beet Eater 625 and Vervaet Beet Eater 617 took the two first prize places in international automotive sugar-beet digging combines’ competition “Beet Europe 2010” in Lelystade, Holland. Over 2 thousand of visitors, half of whom were foreigners, watched the battle of combines. 10 sugar-beet digging combines participated in the competition (see the results’ table below). Vervaet Beet Eater 617, manufactured in Holland, was the best. Ropa Euro Tiger took the second place, Kleine SF10 – the third. According to Adwin Vervaet, owner of the company “Vervaet”, Dutch combines are distinguished for their exclusively good quality of cleaning beet. “We know how to clean the roots well. In Holland, large part of sugar-beets is grown in lands, taken from the sea, where soil is very sticky. So when constructing the tractors, we paid big attention to cleaning system”, - A. Vervaet names the advantages of the technology. Besides, Vervaet combines are lighter than analogical technologies by other producers - they are easily controlled and regulated. About 30 automotive sugar-beet digging combines are produced in Dutch company annually. Three models of digging machines are offered – six rows and 17 tons capacity Vervaet 617. Vervaet combines have been leading in Holland since 1992, while the company was established in 1957. According to A. Varvaet, the most important markets for Dutch combines are Holland, Belgium, England, Sweden and Ukraine. Data sourses: Fertecon European Fertilizer Fax, 26 November 2010, Dairy Industry Newsletter November 23, 2010, Vol 22, No. 15, World Grain Nowember 2010, Agro rinka, Nr. 22 (149)/2010 m., www.vz.lt; www.valstietis.lt; www.ukiozinios.lt; www.lrytas.lt, zum.lt, manoukis.lt, savasukis.lt, Web sites of other companies and other public sources of information
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