Monday, 24 March 2014

So, just how dry is it in Ukraine?

The markets are starting to wake up the the idea that it might be pretty dry in Ukraine.

While there is a risk that Russia might invade further in to Ukraine adding to market uncertainty, for now I'm going to focus on what I do understand; the weather.

It is dry in Ukraine and the story started back in December.

Ukraine had very little snow fall over the winter and the lack of snow melt left the soils dry.

The lack of snow cover also left soils exposed to drying winds.

Temperatures have been above average and this has encouraged winter crops such as barley, wheat and oilseed rape to break dormancy early and start drawing water up through the roots and out through the stomata.

This is set against a backdrop of low rain fall so far this spring and the published soil moisture data and walking dry fields back this up.

While crops are not at wilting point they are starting to work very hard to suck up water and the nutrients contained within and this will be having an effect on plant vigour.  Imagine drinking through a restricted straw and you get the picture.

This will be felt more by shallow rooted cereal crops than the deeper rooted oilseed rape and will now be affecting germination and establishment of recently planted spring cereals.

All in all the situation is clearly illustrated in the chart above which shows the (lack of) soil moisture.

A worrying picture considering we are at the end of March.


Finding myself with a bit of time on my hands this afternoon I thought it would be fun to collate all the satellite pictures from Ukraine this winter to see if it showed the snow story any better which I did and you can find here.

It probably shows the limit of satellite imagery (or at least my understanding of it) as cloud cover obscures a lot of images, but if you study it closely and peak through the clouds it does show how late and patchy the snow was and how early in the year it disappeared.

Well it does to my mind anyway.

Friday, 21 February 2014

Ukraine in Turmoil

I am sitting in my office glued to the images and tweets trying to decide at what point I should load the family up in to the car and head for the Polish border.

The revolution in Ukraine has been going on since November but events escalated yesterday with up to 70 confirmed deaths and that number is creeping upwards.  Protesters and police are being shot at and people are being killed.

Earlier this week various government offices and police stations where I live had been ransacked and set on fire, the regional governor was dragged from office and forced to resign and protesters have gathered in force on the main street.

My neighbours tell me hundreds if not thousands of guns and ammunition has been stolen from police and militia headquarters which begs the question, who has them now?  Last night we heard what we hoped was the sound of fireworks but I now believe to be the sound of explosions coming from weapons and ammunition that was set on fire either deliberately or accidentally.

I drove around town last night to get a feel for the situation and its nervous and getting increasingly nervous with each day.

There are road blocks by both protesters and police, people from both sides are being detained and disappeared, many, many people have been beaten senseless, trains and buses have stopped running and the metro in Kiev has been closed for two days.

The center of Kiev is where the main battle is taking place and current photographs show a scene like something out of a film except it’s not a film. 

I was at the center of the demonstrations in Kiev last Saturday and the atmosphere while tense was calm with music, dancing, singing and cooking outside.  It’s hard to reconcile what I saw then with the images of war there now.

The rumours and stories are flying around with each hour; petrol stations are closing; people are queuing up at the banks; border crossing are blocked; titushki (hired government thugs) are breaking into private property, stealing and beating people; the internet and phones might go off at any minute and so on.

As yet the martial law hasn't been enforced but we are in a de facto state of emergency, the next big question is will the army come out of barracks and if so which side will they take; are we looking at a civil war.

Slava Ukraina! 

Thursday, 9 January 2014

Weather update

Still no snow and when I went for my run this morning it felt more like April than January.

To support my observations here are two charts.

The first clearly and graphically shows the lack of snow cover compared to last year.

By now it would be normal to see a 20cm blanket of snow covering most of Ukraine.

The second chart while less dramatic does show how average temperatures have consistently been above normal since mid October through to December.

And I can confirm are still high through week 2 of January.

Dry and unseasonably warm is how the latest USDA weekly weather and crop update succinctly puts it.

It might go one of two ways.

A rapid drop in temperatures before snow fall with crop damage across wide regions of Ukraine and subsequent reports of catastrophic famine or it snows quickly and there is no problem.

My feeling is the issue will be much more agronomic and subtle than just death by cold.

Fungal diseases will have continued to develop later into the winter than is normal and will have an insidious effect on wheat and oilseed rape in particular.

This will have weakened plants so when temperatures do drop these plants will be less able to withstand the cold and we will see a higher than average level of winterkill as a result.

Furthermore there will be a high inoculm loading come the spring resulting in quicker and earlier disease thresholds being reached.

The same will hold true for insect pests; lifecycles have continued later in to the year than usual and base line populations will be that much higher at the start of the season.

Best make sure that sprayer is primed and ready to go come April.

Wednesday, 8 January 2014

Happy Christmas Ukraine

Yesterday was Christmas Day in Ukraine, Happy Christmas Ukraine.

According to tradition people tuck in to a 12 course vegetarian supper as the first stars appear in the sky.

Carol singers, Christmas trees and decorations, street entertainers, mulled wine and sausages all make the town center a very festive and fun place to be at the moment the only thing missing is snow.

It's like spring at the moment so much so that I am sitting in the office as I write with the window wide open.

One of the most frequent questions I have about Ukraine is what is the winter like?  Well normally it is cold with lots of snow and ice, blue skies and freezing temperatures and it’s wonderful.  

No such thing as bad weather just the wrong clothes; coats, hats, scarves and gloves and off you go.

But winter will come soon, snow will fall and it will get cold.  

The issue we have is will sufficient snow fall before the temperatures plummet?

That insulating blanket of snow is crucial in protecting winter crops; I have seen temperatures drop to minus 30 degrees Celsius with no adverse effects on oilseed rape and wheat safely tucked up under half a meter of snow.

The other issue is will all this mild weather and late arrival of cold allow for greater development of phoma and light leaf spot?  Theoretically yes which could impact on next seasons oilseed rape yield.

I am watching the weather reports currently coming out of the US and Canada and can’t help thinking we are going to get that as it travels across the pond?  

My feeling is we are going to get a big shock fairly soon and winter will hang around well in to the spring with knock on effect on planting and fertilising.

But that is later, for now there is nothing we can do on the farm so time to chillax hopefully without too much of the chill.

Thursday, 5 December 2013

Farming through a revolution


"What do you want to do today kids, swimming, play park or do you want to go to the revolution?"

Not the normal Saturday morning family breakfast time negotiation but it is what I found myself saying last weekend.

Ukraine hit the headlines this week as a demonstration turned in to civil unrest and then an attempt to replace the government.

The spark was an abrupt about face by the Ukrainian government signing an EU Association Agreement that would have paved the way to closer EU integration and arguably social and economic improvements. 

Instead Ukraine chose to sign a free trade agreement with Russia much to the obvious delight of Vladimir Putin who basked in the afterglow of sticking one up the EU.

It didn’t last long.  Demonstrators quickly took to the streets in Kiev and other towns to show their frustration at seemingly another lost opportunity for Ukraine.

In Kiev crowds gathered around the location of the previous revolution and early on Saturday morning when you had the feeling the whole thing would peter out in the cold winter, special forces stormed the site and started beating people bloody with batons, boots and fists.

This had the effect you might imagine, people went nuts, by Saturday evening massive crowds had gathered, there were running street battles, at one point they tried to topple Lenin’s statue, social media was buzzing with evidence of state sanctioned violence, the worlds leaders condemned the actions, barricades were erected and it all started to get a bit serious.

On Monday the government avoided a vote of no confidence then seemed to grow in confidence and started demanding the demonstrators disbanded and vacate city hall they had taken over as an impromptu headquarters.

As I write the situation appears calm but you do have the feeling that it could gain traction and go one of several ways.

In the meantime I have been acting like an unofficial journo as media groups contacted me (me!) looking for eyewitness reports from the front lines, which I duly obliged.

Is this affecting farming?  Not at the moment, all winter crops are currently entering dormancy as the temperatures drop, this morning saw the first bit of proper snow of the season and harvest is officially all but done and breaking records.  Exports might slow up if events turn in to wider actions such as national strikes but at this moment I don’t see anything that suggests beyond the main cities it’s anything other than keep calm and carry on.

I’m proud to say we unanimously chose to attend the revolution and the kids loved it.

Thursday, 26 September 2013

Wet wet wet

Its been raining and the ground is soaking wet.

Oilseed rape planted in to dry conditions earlier this month will appreciate the drink but the cold weather (I wore a hat today) will mean the plants can not really take full advantage.

Winter wheat plantings in Ukraine and Russia are now behind schedule so much so that commentators are writing about a shortage of wheat for 2014.

My contacts are all a little less negative; it is wet and machines are not moving at present but given a dry'ish October then they should catch up.

The more immediate impact of the rain is those business relying on dry conditions to cut sunflowers and soya will incur additional drying costs and more significantly, delays in harvesting corn as they wait for driers to clear the backlog.

Ukraine is about to sign an association agreement with the EU which essentially is a step towards Europe.

Putin is furious and the rhetoric is becoming increasingly aggressive, Russia will likely retaliate the only way it knows how by increasing gas prices.

Crop prices have dropped 40% in the last month.

Corn which was fairly stable all year has dropped from around €170/mt to €100/mt; prices haven't been this low since 2009-10 season and there is a feeling it may go lower still.

Wet crop, high gas prices, low crop prices, record areas of crop, high volumes, no additional drying infrastructure.

It's all starting to look like a bit like a perfect storm.

China in your hand

This week China announced they had had reached an agreement with Ukraine to buy 3 million hectares of prime farmland in Dnipropetrovsk.

After much discussion as to what a hectare is the press went to town trying to contextualize 3 million.

Apparently it's about the size of Belgium, Armenia or Massachusetts and is 11,583 square miles or 9% of Ukraine's arable farm land.

I haven't checked any of these comparisons because I couldn't be bothered so don't email me if they are wrong.

However this was quickly followed up with a Refutation of Information statement from Ukraine saying it had all been a big misunderstanding and what they had actually agreed to was an investigation to cooperate in a 3 thousand hectare drip irrigation project.  

3 thousand hectares is about 11.5 square miles or the size of Slough.

Despite back tracking the intention still holds true that many country's, China included, recognise Ukraine as an important provider of food security so expect more of these announcements in the future and expect some of them to eventually stick.

It also holds true that Ukraine is one bastard of a place to do business.

Wednesday, 21 August 2013

USDA weekly weather bulletin August 20

Scattered showers (5-25 mm or more) and seasonably warm weather in the Baltics, Belarus, western Ukraine, and the western Central District in Russia continued to benefit immature spring grains and summer crops. 

Elsewhere, hot, mostly dry weather in eastern Ukraine, the Southern District in Russia, and southern and eastern portions of the Volga District in Russia hastened crop development and amplified evaporative losses, aiding small grain maturation and harvesting but increasing stress on immature summer crops. 

Temperatures in these latter regions averaged 3 to 6°C above normal, with daily maximum temperatures routinely in the lower to middle 30s degrees C.

Drier-than-normal July weather accelerated the harvesting of winter grains and oilseeds from northern Ukraine into western and southern Russia. 

Meanwhile, spotty showers in central and eastern Ukraine provided some soil moisture for reproductive summer crops, although a lack of stressful heat maintained overall favorable corn and sunflower yield prospects. 

Tuesday, 20 August 2013

Harvest and planting update

Weather conditions have generally been kind for oilseed rape and wheat harvest with both crops now all but finished.

Oilseed rape gross yields are reported somewhere around 2.3mt/ha, similar to last year.

According to ministry 61,000 hectares or 7% of the forecast 924,000 hectares of winter oilseed rape has already been planted. 

My records suggest that’s a slight decrease on last years planted are but we still have a three week planting window to go.

Current local spot price for oilseed rape is a paltry 3,100uah/mt (382usd/mt); this time last year oilseed rape was selling at a more respectable 4,400uah/mt (541usd/mt).

Wheat yields are up on 2012 with the ministry of agriculture’s current official estimate hovering around 3.4mt/ha (last year it was 2.9mt/ha).

Local spot price for 3rd class wheat is 1,200uah (148usd/mt) compared to 1,700uah/mt (210usd/mt) at the same time last year.

Corn is looking good at the moment with this season’s weather playing a big role in helping the crop germinate, grow and pollinate well.  A recent cool spell coincided with corn pollination which helped seed set. 

Current estimations are pegging corn at 5.95mt/ha although the feeling is the price will be low.

Sunflower harvest is away in the south with early yields coming in a smidge over 1.0mt/ha.

Soya is looking good as it generally does at this time of year and early predictions are for a reasonable crop but who make money on soya in Ukraine?

Tuesday, 13 August 2013

The problem with Ukraine is...

Ukraine has land, lots of it; 32 million hectares of large flat arable fields.

Ukraine has a great climate; an intense growing season that turns the country from drab winter greys to a vibrant green jungle inside of a week and allows all the major commodities to flourish.

Ukraine has soil; deep, fertile, easily worked stuff, even the Nazis, not best known for their agronomy skills, recognised the potential, shovelled it in to wagons and carted it back to Berlin.

Ukraine is perfectly located to market; 400m next door in soon to be annexed Europe, 140m in the former colony Russia and a further 500m hungry souls just though the Bosporus in the Mediterranean and North African countries.

So why does Ukraine's agricultural productivity not reach the much hyped potential?

I could write a thesis on the subject but today I am going to pick specifically on contractors.

There aren't any.  At least not any that behave like contractors.  There are farmers and chancers that portray themselves as contractors but in reality no contractors.

Take one contractor I use for example - I'll call him Sergey.

Sergey has no problem turning up late; not turning up at all; turning up with discs that have discs missing leaving an uncultivated strip running down the middle and doesn't see why this is a problem; cultivating too shallow so he can speed through the hectares; stealing diesel; stealing fertiliser; overcharging; making up invoices; charging twice for the same job; all in all just being an out and out dick.

Before you ask why use him, the others are the same but turn up drunk.

There is a huge opportunity for young budding entrepreneurs to establish a contracting business here in Ukraine, providing a normal standard and normal quality of service to established large farming entities.

Many, me included are looking to fund capex and outsourcing machinery services in partnership with a proper contractor is a very real option.

To my mind initiatives like this will lead to increased productivity and improved profitability and the likes of Sergey will go the way of the dinosaurs.

Forced to eat his own defecate as he runs out of food.

Monday, 15 July 2013

Harvest update

Current Ukraine harvest reports for small grain and oilseed rape are putting yields more than 30% up
on last year. 

Initial harvest results are from southern Ukraine regions with the bulk harvest yet to get underway further north.

Higher than average rainfall in southern Ukraine will have played a big part in those high yields.

The question will be how high these figures are maintained as harvest progresses in to areas that have received average rainfall figures.

Thursday, 11 July 2013

Ukraine and Russia harvest gets underway

Harvest 2013 is up and running and initial indications are that its going to be big.

Ukraine Ministry of Agrarian Policy are currently pegging rapeseed at 2.0mt/ha, spring barley at 1.5mt/ha, winter barley at 2.7mt/ha, winter wheat at 2.9mt/ha and rye at 2.4mt/ha.

Total grains and pulses are quoted 2.68mt/ha which is up 36% on same time last year.

Across the border, Russia are quoting rapeseed at 1.7mt/ha, barley at 4.4mt/ha (really?) and wheat at 3.5mt/ha. 

Total grains are 3.56mt/ha which is up 26% on same time last year.

As always I would season these figures with plenty of salt but it does look to be true that so far 2013 crops are performing better than 2012.

Although weather does more to meddle with yield figures than mere human intervention the general condition of crops is improving year on year. 

You never used to see tramlines, you do now.

As each season goes the level of knowledge, experience and technology is improving but then again so it should be, this is 2013 after all. 

But before I run away with the idea all is rosy in the workers paradise let's be honest, three ton of wheat is not all that when the rest of Europe pushes six.

The report card reads "Yuri and Dmitri are working hard but they could do better...much better."

And when they do...

Sunday, 19 May 2013

Ukraine and Russia crop and weather update

Reports of improved chances of rain in the FSU came true this week as light to moderate rain fell in parts of western Ukraine.

Eastern Ukraine and Russia remained dry with farmers in the regions telling me winter wheat is now in ear and starting to show visible signs of drought stress.

Substantial rains expected for Russia's southern district will help newly planted maize and sunflowers but will have a limited effect on these crops approaching the reproductive phase.

Talking of rape, it might just be me but all the stuff I have seen between Lviv in the west and Chernigov in the north looks a bit sickly.

Like that pale, runty kid who shuffled about at school perpetually sniffling and dribbling in to a snot rag.  It's all there just a bit weedy looking.

I'm putting it down to plants running out of steam in the longer than usual winter and it's taking longer than usual to bounce back.

The problem now is that the time left to bounce back is getting less with every day so the bounce will not be as high as we would have hoped.  I am anticipating a yield penalty.

Although corn and sunflower plantings have picked up the pace the Ministry of Agrarian Policy might be jumping the gun when they reported this week that 4.6min ha of maize (97% of the plan), 3.9min ha of sunflowers (99% of the plan) and 1.25min ha of soya (87%) had been planted.

Which for no reason at all reminds me of the story about the talented soviet aircraft designer Oleg Antanov who when looking to reduce weight on one of his aircraft designs decided not unreasonably to replace the four stroke back up generator with a lighter two stroke version.

When party officials got wind of this they told comrade Antanov that the step from four stroke to two stroke was too radical and revolutionary and insisted he used a three stroke engine instead!

Monday, 6 May 2013

Ukraine spring crops update

May and summer is well and truly here. 

The season went from deep winter to summer completely bypassing spring all in the space of a couple of weeks.

The end of March saw the mercury at minus 20 Celsius yet by the end of the April daytime highs were just short of 30 Celsius. 

Minus 20 to plus 29 in 30 days.  No wonder the roads are crap.

The meter deep snow that was present in April rapidly disappeared and slide off through the soil profile never to be seen again.

Field work started by the second week of April with planting underway by the third.

By the first week of May analysts started ringing the alarm bells that the ensuing drought was going to harm Ukraine's previously (like two weeks previously) forecasted record yields and unless it rained quickly famine was sure to follow.

Yet a quick look at the met data shows rainfall and soil moisture at or above the average so go figure.

On the ground no one is complaining of dry conditions just yet - apart from those in the East and South but they all ways do so there's no news there.

Winter conditions even with the late start have been favourable and most crops survived with negligible levels of winter kill; which means there isn't going to be a big upswing in spring planted crops particularly export friendly corn and barley.

Clear weather ahead means corn, sunflower and soya plantings are rapidly catching up, no doubt we will need some rain soon but it usually arrives at some point.

Prices have been buoyant of late with all the major commodities fetching prices at or very near to five year highs.  Is this the year farmers make money?

The Ukrainian China trade deal has started to take effect with local administrations now tasked with the job of sourcing 5mmt of corn to send to China by the end of the year.  The deal is the Ukrainian government will pay the farmer 700uah/mt (that's about €66 but likely to be a lot less once the hryvna devalues which is expected any time soon) and the balance based on the market value at delivery. 

No specific mention of when that balance will actually be paid.

The fertiliser supply chain issues seems to have righted itself just in the nick of time with fertiliser now turning up on farms as its being spread.

In summary, crops are looking good, summer is here, roads are still crap!

As another season gets underway I wish good luck to all farmers and use the quote that once in your life you need a doctor, a lawyer, a policeman and a preacher but everyday, three times a day you need a farmer.

Thursday, 28 March 2013

Ukraine winter crops update

There has been a lot of snow over the last two weeks; two big snow storms hit the country stopping anything moving or much happening. 

It must have been big because even Kiev went in to lock down with reports of miles of abandoned lorries and cars blocking the streets.

One of my guys was unfortunate to be in that traffic and spent 14 hours trying to leave Kiev.  He said it was like a scene from a zombie movie with people wandering around randomly parked vehicles looking for help.

It might have been a lot of snow in a very short period of time but selling off all the snow ploughs and snow clearing equipment didn't help matters.

Our local administration demanded I gave him diesel to fuel a snow plough which turned out to be a converted tank as mysteriously his snow ploughs had all disappeared. Maybe under the snow.  

What's the impact on crops?  They should be OK but this winter is going on a long time and there is still a lot of snow sitting on top of the crops.

Official figures put 92% of winter crops in good to satisfactory condition.  All I see when I look is whitey white whiteness.

I'm sure the snow will eventually go, once it does I suspect we will see a higher than normal incidence of typhula in wheat and rape and oilseed crops that did not receive an autumn fungicide (pretty much everything) will see more plants die because of light leaf spot and phoma which will be incorrectly attributed to winter kill.

As snow melts it will make for very wet and cold soils, getting on with spring field work will be a challenge and spring plantings will be late.

All of this is compounded by the normal issues in Ukraine the main one being nitrogen fertiliser supply.  Delivery is being quoted around 60 days which puts it on farm end of May. 

Official figures suggest farms are in a good position with 40% of spring fertiliser paid for.  What they fail to mention is how much of that has been delivered?

One final thought, how does the guy who drives the snow plough get to work in the morning?

Friday, 18 January 2013

Chinese Ukrainian agricultural cooperation

I've seen plenty of Chinese delegations whizzing in and out of Kyiv's top hotels over the last couple of years and it seems to be paying dividends.

Trade between the two countries now exceeds 10 billion usd.

China, the worlds largest consumer of corn is planning to buy 3.0mmt annually over the coming years. 

Well done Ukraine for securing a major buyer.

Seemingly China sees Ukraine as a strategically important partner in securing food supplies and has provided a 3 billion usd loan to help bring the countries farming up to scratch. 

I suspect the bulk of this wont end up anywhere near a farm and what does will be carved up by various agencies trying get a slice of the action.

Although 3 billion usd is not to be sniffed at, to keep it in context I estimate Ukraine needs about 50 billion usd in to farming alone plus further significant investment in agricultural education to update the workforce plus a large cash injection to improve research, plant breeding and animal genetics plus a further huge amount for infrastructure, transports, drying and storage and if there's anything left over something to rebrand Ukraine as an international food producer. 

Each journey starts with the first step.

Tuesday, 15 January 2013

It's been snowing in England...

...and the BBC react as if it's the end of the world; cold weather warnings; ice warnings; how to drive in the snow; band of snow heads across the UK and those ubiquitous saccharine photos of snow covered Robins and Cathedrals.

Snow.  It's white. Its cold. It comes every winter to vast regions of the world. Millions of people live with it, sometimes people die of it, it looks nice because it covers up all the crap, it fills in the potholes making driving slightly more pleasurable if not slightly more dangerous. 

It's snow, it's not news unless it's a problem, man up BBC and get back to the job of reporting and not churning out pointless tosh.

Here's a photo of snow.

Monday, 14 January 2013

Ukraine to Canada

There are a lot of similarities between Ukraine and Canada, not least they are both massive and driving around is a test of endurance. 

The climate is not too different and the farming could learn a thing or two from each other.

My new pal Brian has a Farm Consultancy  business (Prairie Farm Consulting) in Canada on the Saskatchewan Manitoba border helping farmers manage their business by working out the true cost of production. 

Essential but often tedious when stuff needs to be done outside.

Check out the link for a full list of services and see if he can help you.

Ukraine increasing agricultural exports

Ukraine increased agricultural exports by nearly 40% in 2012 to 17 billion usd.

This included meat, fish, dairy, poultry, vegetables, veg oil, sugar, wine, nuts and apples as well as 6.7mmt of wheat.

Export destinations included the EU and CIS with Austria having a taste for Ukrainian apples; Poland unsurprisingly buying rye; Egypt and Spain are the largest buyers of Ukrainian wheat and Saudi Arabia taking three quarters of Ukrainian barley (I wonder what they do with that?).

Other interesting statistics from 2011 worth noting are Ukraine is still the top barley exporter (I think that might change this year); is the third largest maize supplier (second to US and Argentina); is the worlds largest sunflower exporter; is the fourth largest potato producer and is the worlds fifth largest walnut producer.

Russian 2012 grain crop update

The Russian Ministry of Agriculture peg the 2012 grain crop at 70.7mmt, down 25% from 94.2mmt a year ago.  They also suggest that quality might be up with 4.6% larger portion of milling wheat than in 2011.

Wednesday, 9 January 2013

Black sea crop condition

Official and unofficial crop condition reports from Ukraine are bullish with 90% plus of winter grains in the good to excellent category. 

Autumn rains helped establishment and those crops are now by and large safely tucked up under a blanket of snow.

A different situation is emerging further east in Russia. 

A recent and rapid drop in temperature has coincided with no snow cover in several grain growing regions. 

Low temperatures with little in the way of protective snow will result in higher than normal plant death and a corresponding drop in yield.

So in a nutshell; Ukraine is set for a bumper 2013 harvest and Russia is set for a catastrophic 2013 harvest.

But it is only January and there is a lot of season yet to go.

Sunday, 23 December 2012

Summary 2011-2012

Dry 2011 autumn

Cold winter

Very low levels of winter kill

Normal spring rainfall

Autumn planted crop yields down

Wet autumn

Prices up

Don't look back in anger...2012 review

The last twelve months has been busy busy busy; the shortage of blog posts attest to that.  A new baby due in the new year means I make no promises that my output will increase in 2013 but we'll see.
 
2012 started cold, very cold even by Ukrainian standards with temperatures in January falling as low as -35 Celsius and grain markets reacted accordingly.
 
One of the mysteries to me that is why does a rumour in January about a crop that can’t be seen under a thick blanket of snow, that won’t be harvested until August affect the grain price in Chicago?
 
That thick blanket of insulating snow meant there was no significant additional winter-kill and crops came out of the winter pretty much in the same condition as they went in.  The rumours were in fact just that; rumours.
 
Drought in the autumn had meant germination was patchy and poor looking wheat and rape going in to the winter still looked poor once the snow melted but it was all still there.
 
By the end of February temperatures returned to normal and spring weather started to arrive in March.
 
Soils quickly soaked up the melt water and field work started almost immediately giving some indication how dry the soils had been.
 
Planting started in April with record hectares of maize going in on the back of encouragement from the local administration.
 
Rain and warm temperatures in May saw crops speed through the growth stages with the first barley crops being cut in Crimea by the end of June.
 
Harvest was well underway by August with oilseed rape up on last year with official figures at 2.2mt/ha and wheat down at less than 3.0mt/ha.
 
New crop rape, wheat and barley started going back in to the ground in September in to pretty much ideal conditions, moist warm soils and warm weather encouraged good germination and early plant growth; very different to 2012.
 
October and an election saw the ruling party retain majority.
 
The rest of the harvest progressed through the autumn with official figures currently running at sunflowers 1.6mt/ha; maize 4.7mt/ha; soya 1.7mt/ha.
 
The wheat export ban came in to force in November then was off then back on again then no one seemed to know for sure.  It was reported that traders and the government agreed that once wheat exports exceed 5.5mmt a voluntarily restriction would come in to force.  At the time of writing export figures run at 5.6mmt.
 
Winter has arrived two weeks early with snow and sub-zero temperatures drawing the season to an early close.
 
In summary 2012 was a reasonable farming year but another difficult year in which to do business.

Wednesday, 12 September 2012

The boys are back in town...

Actually the boys are in this particular town for the first time the day before the election in October, with the boys being the German heavy metal outfit the Skorpions and the boys being well in to their fifties.

A fairly tortuous way of saying once again the Skorpions are touring Ukraine despite being here in 2010 on their much acclaimed farewell tour.

Talking of aging rock stars have you seen Angus Young lately? 

I enjoyed AC-DC when I was twelve, fond memories rocking out at the school disco and I was dumb struck with the rest of the rocking world when Bon Scott drowned in his own puke.  But for crying out load Angus it's time to change the image.  Hang up the school uniform for pity's sake, you look like one of the Krankies. 

Wearing a school uniform in your twenties was always a bit weird but now you're in your fifties it's just plain unpleasant.

You shook me all night long indeed.

Friday, 31 August 2012

Cool weather helped Ukraine corn pollination

The cool spell during pollination helped ensure a full seed set as seen in this picture taken today of a fairly typical example in western Ukraine.

Regular rain events have helped grain fill and I think we might be looking at some fairly hefty crops come harvest.

However my sources are telling me a different picture is emerging in eastern Ukraine with farmers starting to harvest corn crops at very, very low yields.

While it's always difficult to get reliable data on how much crop is grown what is true is the eastern regions account for 30 to 40% of the arable growing area.

So while we might see bumper crops in the west this will probably be offset by low yields in the east.

Monday, 27 August 2012

How time flies!

A combination of harvest, children and unscheduled hospital visits and before you know it mid-May turns in to late August and you haven't posted a blog in all that time!

Tempus fugit indeed!  So what's new?

Oilseed rape harvest is well and truly over with official yield figures coming in at 2.2mt/ha and a local spot price of 4,400uah/mt (543usd/mt) giving the crop the makings of a profitable enterprise.  At those parameters and assuming variable costs of 4,410uah/ha (544usd/ha) the gross margin is 5,270uah/ha (650usd/ha) which according to John Nix is about average.  Not bad for a crop that many had written off as lost during the cold winter.

Winter wheat harvest is all but over with current official estimates down on last year at 2.9mt/ha; most of that yield hit occurred in the dry autumn.  Current local spot is 1,700uah/mt (210usd/mt) with variable costs around 1,900uah/ha (234usd/ha) giving a gross margin of 3030uah/ha (374usd/ha) which is well below the low end of Professor Nix.  However keep in mind that wheat in Ukraine is the poor relation crop compared to rape, corn, sunflowers and soya and fixed costs, particularly rent are much lower.

Weather conditions have been very kind to the remaining crops in the ground; corn, sunflower and soya, with coolish temperatures and a little rain to help them along.

The much anticipated football tournament came to Ukraine and went by without any significant problems, I even managed to catch a couple of games; at one point I found myself sat slap bang in the middle of the German supporters during the Germany Portugal match.  How I cheered when Germany scored, das war gut ja!

The summer got hotter, then cooled, warmed up a bit and is now cool again. 

Weather patterns have by and large been very good this season unless you're in the east where for the third year running they have been complaining of drought and high temperatures.  Can you see a pattern?

The clock has gone full circle and new crop rape is going back in to the ground as I write, mainly in to warm moist seedbeds which is very different from this time last year. Bodes well for wheat plantings due to start in about three weeks.

There you have it, four months in Ukraine in a nutshell.

Wednesday, 16 May 2012

Ukraine Crop update

Five years I have been in Ukraine and it always surprises me how quickly crops move through the growth stages, it really shouldn't by now but it does.

I follow crop development in western Europe via the power of the internet and at the beginning of April we seem so far behind anything in France, Germany or the UK.

Then BAM! May arrives and everything catches right up and starts to get a nose in front.

No sooner has oilseed rape woken up from the long winter, rubbed the sleep out of it's eyes and it's in full flower demanding the mid-flower spray.

Wheat goes from GS30 to flag leaf in the blink of an eye, so much so that you miss T1, have to send all the PGR back and are looking at T2 based on what you bought for T1.

Maize and sunflowers are now out of the ground with two leaves showing and will be up around your knees before the month is out, pushing the pre-em sprayer to the limit as a result.

One free piece of advice if your considering farming in Ukraine; when you have carefully written your workplan and diligently calculated how many sprayers you need, buy one more.



Thursday, 10 May 2012

New appointment

Look who got himself a new job this week, back in the driving seat and in complete control.

In truth he always was the front runner for the position with years of experience under his black belt and no one else vying for the position it was basically his for the taking.

Kolkhoz Kremlin is happy to see him back and expect output to rise significantly as a result.

To the next great leap forward!

Weather


On the 10th April the average temperature was 2 degrees Celsius, by 30th April it was 22 degrees.

That's an increase of 20 degrees in 20 days; no wonder everything suddenly turned green and started growing.

Recent reports that the hot weather may have affected spring seedling growth have come a little premature as temperatures return to near normal and showers cooled everything off.

Wednesday, 2 May 2012

Weather update

April finishes with rainfall and temperatures above average and above this time last year.

May has started very warm with daytime temperatures reaching the mid to high twenties.

Occasional showers are continuing to water thirsty crops but not so much as to disrupt spring plantings.

In summary; marvelous weather, the question is how long will it last?

Tuesday, 1 May 2012

Something is different...

You might have spotted that I have changed the layout of the blog a little bit.

After two years I thought it was time for an upgrade so here is the new revised Agronomy-Ukraine with comments about Russia too.

It's been a busy news week

Ukraine has been in the headlines for all the wrong reasons again this week.

Bombs left in litter bins exploded in Dnipropetrovsk.  With only 37 days to go to the start of Euro 2012 authorities were quick point out that because it is fiendishly difficult to pronounce, Dnipropetrovsk was not one of the host cities.

Then there is Yulia Tymoshenko, the jailed opposition leader who has allegedly been beaten up in prison and is reported to be on hunger strike.

As a result five European presidents have said they will avoid a summit meeting in mid May and the EU president along with Angela Merkel are the first to announce they will boycott the football tournament.

I suspect the football will go ahead regardless, probably best to avoid hanging around litter bins though.

Friday, 27 April 2012

The rise and fall of oilseed rape

A killer combination of cold winter and dry spring in Europe has reduced estimates for wheat and in particular oilseed rape.  Not so in western Ukraine where the crop is looking extremely good.

But there's not as much of it as there used to be. 

A quick look at the production figures shows the rise and steady fall of oilseed rape in Ukraine from 2005-06 when just over 100kha was grown to a peak in 2008-09 when more than a million hectares produced 2.7mmt. 

But why the decline thereafter?

A couple of difficult growing seasons, high cost of production and a lack of technical knowledge is in my considered opinion why we have seen the crop fall out of favour.

But could 2012 be a turn around season?  Low European output will push the price up, Ukraine is set for a good harvest, money will be made and everyone will get excited about oilseed rape again. 

Will 2012 planting rise on the back of it?  I think so yes.

Thursday, 26 April 2012

Buckwheat

This time last year everyone was getting over excited about that staple of Ukraine cuisine, buckwheat.

Back in 2011 every man and his dog was telling me to grow buckwheat "cos it's more valuable than gold and you'll make an absolute killing". 

Taxi drivers, agronomists, old ladies on the street, everyone was behaving as if they worked for the Buckwheat Marketing Board on commission.

Funny how a year later no one is reporting a significant rise in the number of buckwheat millionaires. 

No one is reporting buckwheat full stop.  Until now...

Perfect Storm

It's been raining on and off for the last week and the forecast is for warm and dry. 

Perfect growing conditions. 

Ukraine is about to do what it always does at this time of year which is to go from brown to a vibrant green in the course of about a week.

A dry spell will allow corn and sunflower plantings to fully get underway and warm moist soils will encourage crops to positively shoot out of the ground.

Winter crops are improving all the time and I see other analysts are now agreeing with me and upping their assessment of Ukraine's winter crop potential.

Remember, you heard it here first.

Monday, 23 April 2012

Crop update

The weather is encouraging rapid plant growth and crops will be racing through the growth stages.

Oilseed rape first nitrogen should be on by now.  The crop is looking the best I have seen it for three years and has a lot of potential that will be worth looking after.  Production figures are suggesting a shortage of OSR so this years crop should be worth something.

Winter wheat is just approaching GS31 and requires first application of nitrogen from now.  Much of the nitrogen applied earlier than now will have been washed out of the soil and will not be available to the crop.

Maize and sunflower drilling is just about getting underway although recent rain has slowed plantings.

Officially all spring cereals have now been planted because the reports have been written saying so.  But it hasn't.