Forecasts for reduction of world maize production

Forecasts-reduction-world-maize-production

Greek maize cooperatives and producers are optimistic about prices in maize, because the yields are expected to be good, although this year’s cultivated acres are less, due to the last year’s poor commercial maize season. This year’s good performance of silage supports their optimism. According to Agrotypos reportage the silage value is determined by the method of payment. So those who are paid in cash, receive 3.5-3.8 cents per kilo, while those who are paid by credit (usually by a 4-month check) the price ranges to 4 cents per kilo. At the meantime the forecasts of European Commission give hope for good prices the following months (today the producer’s price is about 18 cents per kilo) and refer a reduction by almost 9 million tonnes of this year’s world maize production.

World maize production

According to a report of US Department of Agriculture – USDA, in August of 2015, the world maize production for 2015/16 is provided to be decreased by 20.6 million tonnes (almost 2% for the 986 million tonnes) compared to the last year’s production. Great reduction is recording in the US production (-13.5 million tonnes, a percentage of -3.7%), in EU (-12.9 million tonnes, -17%) and in Brazil (-5 million tonnes, -6%). On the other hand, a small increase (4 million tonnes) is foreseen for global consumption, which exceeds production by 2.3 million tonnes. Consequently, the stocks are going to be decreased (by 2.3 million tonnes, -1.2% compared to the previous year 2014/15, when an historical maximum was recorded). The 2015/16 EU maize production will be reduced to 62.3 million tonnes (-17% compared with the previous year, when the maximum quantity of 75 million tonnes was produced).

Agrinio

Mr. Nikos Kazatzis, the Director of Agricultural Cooperative called “Union of Agrinio” (western Greece) said to AgroTypos “This year we expect good yields almost the same with the last’s year although the cultivated hectares are less, are near to 76,000”. About the prices, Mr. Kazatzis mentioned “We should wait to see how the market is formed. This year due to the political situation in Greece there are several problems that have an impact on the economy”.

Kavala

Mr. Klearchos Sarantidis, the Director of Union of Agricultural Cooperatives of Kavala (northern Greece), stated to AgroTypos: “The cultivated acres are reduced by about 20% compared to the last year, but the production is expected to be good”. He added: “There are maize stocks from the previous year, because the demand for feed during the winter was low. The information from USDA indicates that production is reduced, so we hope to have better prices compared to last year, which was at 14.5 cents per kilo. Today the producer’s price is at 15 cents per kilo “.

Thessaloniki

For good performance of silage which gave good income to producers talked to Agrotypos Mr. Christos Tsichitas, the President of the Union of Agricultural Cooperatives of Thessaloniki (northern Greece). According to him: “the silage went well from 3.5 to 3.8 cents per kilo in cash, and up to 4 cents per kilo by credit. The estimation of producer’s price for dried maize is that it will be better than last year. In our region last year, the price started from 14 cents per kilo, while this year there is optimism even for 20 cents per kilo. Although today the price is at 17 cents per kilo”. Mr. Tsichitas made us known that this year in Thessaloniki fewer acres were cultivated than in 2014, but they expect good yields.

Larissa

Agrotypos also contacted the producer and President of the Agricultural Cooperative of Larissa (central Greece), Mr. Christos Sidiropoulos, who noted: “This year’s quantity and value of the silage was good, specifically 0.38 cents per kilo last year while this year was 0.42 cents per kilo. This year’s dried maize prices are estimated to be increased. We should also mention that the international market of all these imported agricultural products require prepayment, so it is obvious that this year due to the problems with the banking system in Greece imports cannot be at the same level as the previous years”.

Ilia

According to Mr. Gerasimos Kallimoros, the President of Union of Agricultural Cooperatives of Pyrgos – Olympia (northern Greece): “This year the cultivated acres are decreased while yields are expected to be as usual. The producer’s price today is 18 cents per kilo”.

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