Drought to cause yield decrease in grain-exporting countries

Новость на Казах-зерно:

The northern grain-growing regions of Kazakhstan are now suffering from drought. Experts say that the current unfavorable weather in the Kostanai region was last registered in 1975.

Farmer Ibrash Yestayev: «I have never seen such unusual heat wave in the Kostanai region. The current situation with wheat is extremely heavy.»

Kazakh First Deputy Prime Minister Serik Akhmetov: «Our mission is to keep the prices of flour and bread stable and to prevent dumping of livestock and poultry, to create an appropriate seed stock for next year. I want to emphasise the personal responsibility of the governors! First of all, territorial governors of all levels, including regions as well as agricultural producers and farmers, who supply it to people.»

Affected farms are to receive support from the government reserve, while the KazAgro holding is ready to prolong the maturity of loans that may last until next harvest in worst cases. According to the Kazakh Minister of Agriculture, Food Contract Corporation will supply one million 300 thousand tons of grain at the price of 28,000 tenge per tonne to regions in order to stabilize the price of bread.

Kazakh Minister of Agriculture Assylzhan Mamytbekov: «Despite any fluctuations in the domestic and foreign markets, these volumes of grains will be supplied at the same price, which means Food Contract Corporation will not be seeking for profit.»

This will allow local farmers to sell grain overseas. According to forecasts from experts, this year the Russian Federation will only get 50-60 million tons instead of the average yield of 80-90. According to some estimates, the price of grain in foreign markets will automatically increase up to 53 thousand tenge per tonne and its exports quotas will be cancelled.

Farmer Ibrash Yestayev: «I keep in touch with grain producers from the Russian Federation. They have a very difficult wheat situation there. They previously yielded 4,5-6,0 tonnes per hectare. Now, they expect to get up to 1,2 tonnes.»

Government-provided emergency measures were reinforced by the document: the Ministry of Agriculture, KazAgro, the Union of Millers and the governorates of several regions have signed a memorandum under which Food Contract Corporation will deliver the promised amount of grain, while governorates will not allow the price of the so-called «social» bread to increase in retail stores to more than 45 tenge per loaf.

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