Producers have little control over the price of wheat and barley, but this year’s higher expected yield may help offset growing production costs. Farmers say they’d be satisfied with the current Commodity Exchange price, given their expenses have gone up.
Some agricultural tasks are not finished yet. Insect damage to the ears means another spraying might be required — the fourth this season, according to farmer Žarko Kovačević from Pavlovac. Nonetheless, this additional expense is not expected to drastically undermine profits, as the chemicals are relatively cheap and the harvest is expected to be abundant.
Costs after harvest
Costs continue even after harvest, mainly for storage. According to Aleksandar Lukić from Stejanovac, these expenses amount to about 1% per month of the total, plus fumigation, depending on the amount and storage conditions.
Lack of funds may prompt many to sell their grain immediately once prices appear on the market. “If the price is good, agricultural producers will likely sell all their wheat immediately. I do not expect prices to rise in the near future,” says Branislav Kockar, a warehouse operator from Kikinda.
Situation with barley
Some producers hoped for profits from barley, particularly when its price briefly exceeded that of corn. However, many find it hard to explain the dramatic drop in price just before harvest. “Some buyers are offering 17 dinars per kilogram, which is absurd, considering it can be a substitute for corn in dairy production. If aflatoxin were removed, the price would be much higher,” says Dušan Radanović, a farmer from Čurug.
For now, farmers say selling at the current Commodity Exchange price — 22.5 dinars for wheat and about 25 dinars for barley — is viable.
