Wheat harvest starts, price mystery

Serbian farmers are out in the fields for this year's wheat harvest, but they still don't know what the price for their crop will be. Agriculture Minister Slobodna Milosavljevic said today that the state will not set the price for this year's wheat, and will instead let it "form freely in the market". Wheat harvest starts, price mystery He added that his personal estimate is that the price will range from RSD 16 to 18 per kilogram. This, Milosavljevic said, is "several dinars more than in the region". The harvest in Vojvodina is already underway, while it will most likely start in a week's time in other parts of Serbia. It is customary for the buying prices to be announced at least one month before the combines take it to the fields, but this year farmers are left completely in the dark, as major players in the wheat market keep silent. These big players are few in this country: MK Commerce, Delta Holding, Matijevic Agrar, Danubius, Nicko and Invej. The reason they will not come up with any prices is fear of offering too much or too little, insiders say. This, along with volatile world markets, has given rise to rumors that mills will offer no more than RSD 15.5 for one kilogram of wheat – something farmers see as unacceptable, at the same time accusing the milling industry of colluding to fix prices by refusing to make any official offers. Last season, big companies bought wheat for RSD 10.4,from producers. Several moths later, the price was 200 percent higher. Farmers are fearful that a similar scenario might be in the offing this year as well. Earlier, estimates of this year's crop said that some 400,000 hectares should yield 1.8 million tons of wheat. Hard work with uncertain reward (Tanjug)

Wheat harvest starts, price mystery

He added that his personal estimate is that the price will range from RSD 16 to 18 per kilogram. This, Milosavljević said, is "several dinars more than in the region".

The harvest in Vojvodina is already underway, while it will most likely start in a week's time in other parts of Serbia.

It is customary for the buying prices to be announced at least one month before the combines take it to the fields, but this year farmers are left completely in the dark, as major players in the wheat market keep silent.

These big players are few in this country: MK Commerce, Delta Holding, Matijević Agrar, Danubius, Nicko and Invej. The reason they will not come up with any prices is fear of offering too much or too little, insiders say.

This, along with volatile world markets, has given rise to rumors that mills will offer no more than RSD 15.5 for one kilogram of wheat – something farmers see as unacceptable, at the same time accusing the milling industry of colluding to fix prices by refusing to make any official offers.

Last season, big companies bought wheat for RSD 10.4,from producers. Several moths later, the price was 200 percent higher. Farmers are fearful that a similar scenario might be in the offing this year as well.

Earlier, estimates of this year's crop said that some 400,000 hectares should yield 1.8 million tons of wheat.