A rich harvest turned against the South Ural grain producers in Russia

Russia

Published Sep 19, 2022

Tridge summary

Agrarians of the Chelyabinsk region are again suffering losses after a dry 2021. This time, the reason was the low purchase prices for grain, formed due to the abundant harvest. Farmers suspect processors of collusion. The latter believe that today's prices are economically justified - traditionally, surpluses of raw materials lead to their reduction. The regional authorities hope for the participation of the region in grain interventions, which will help support local agricultural producers.

Original content

But the fact is that it is problematic for the Southern Urals to enter the state program, since the region is grain deficient. This year, the Chelyabinsk region can safely count on a good grain harvest. Compared to 2021, when the region suffered from forest-steppe fires and drought, the weather this summer favored farmers. As a result, 1.8 million tons of grain in bunker weight have already been harvested in the Southern Urals, which is almost twice as much as last year and is a record for the last 25 years. It would seem that farmers should be satisfied, but the abundance of the harvest has led to a sharp decline in purchase prices. Now agricultural enterprises cannot sell the accumulated grain even at cost and warn of possible bankruptcy. “We are still standing, nothing is moving anywhere. There is no price. To reach at least the cost price, we need last year's prices. Today it is possible to hand over the grain, only the price does not suit us at all, - Oksana Krel, the head of ...

Source: Zol