Drought, fires cause huge damage

Drought, fires cause huge damage

The severity of the droughts that hit Serbia and the region in July have been unprecedented since meteorological measurements started in 1882.

The droughts have literally scorched whole crops, especially those that were in the watering phase. Corn yield dropped 30 percent after July, dragging down estimates from an initial 6.5 million to 4.5 million tons from 1.2 hectares.

The production of soy beans from 150 hectares will be 240,000 instead of 350,000 tons, while sugar beet is down to about 46 tons from an initially estimated 54 tons.

There is no precise data on the effect on the yield of vegetables and fruit, but it is clear even now that these crops will suffer a similar fate.

According to estimates by the Serbian Chamber of Commerce, the yield of vegetables and fruit will be lower by some 40 percent in the wider Belgrade area.

The production of meat, milk and diary products is also expected to suffer. Half a million chicks were mowed down by the high temperatures in the poultry industry, while the yield of eggs is down by 700,000.

The green market was quick to react: the price of vegetables and fruit is up 25 to 75 percent. One and a half million tons of corn stock prevented the price of corn to rise more than it did at the Mercantile Exchange, from RSD 10 to 12.5 (12.4 to 15.5 eurocents) per kilo.

At the same time, on the European markets, the price of corn is about USD 180 per ton (EUR 130). In the U.S., supplier of 40 percent of the world’s corn surplus, the price is US$ 30 lower.

The two million tons of corn that went into thin air could have brought US$ 360 million on the market. The drought has also cost the economy US$ 28 million in soy bean and 60 million in sugar crops.

After chipping in the costs of harvest, storage and transport, the damage to the economy for just these three crops totals US$ 450 million. Add to this that the spring droughts cut the yield of wheat by US$ 100 million, which raises the overall cost to US$ 500 million.