Friday, 17 December 2010

Wheat or rape, that is the question

Sintal is replacing wheat with what they are calling “technical crops”; thats' break crops to you and me – osr, soya, sunflowers.

They are citing greater profit with analysis showing margins from technical crops at 60% and "sometimes 70%", compared with 19% from winter wheat.


The problem with financial analysis, it doesn’t always give you the full picture.

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In my experience it is dangerous to chase margins, you need an overall strategy with a mix of crops according to your competitive advantage, machinery policy and risk management.

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Sintal go on and say that they find winter wheat more vulnerable to weather conditions. All crops are vulnerable to weather, they live outside, that’s why you need a range to spread the risk.

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When you have been farming long enough you learn to accept that it’s always too hot/cold/dry/wet for any given crop at any given time.

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They'll have to update their website then, it states their goal is to become one of the leading producers of cereals in Ukraine and Europe.