Spain overtakes drought-hit UK in grain production

images UK grain crops have suffered worst among Europe’s big cereals producers from the dry spring, leaving the country set to fall behind Spain in the region’s grain-growing table.

Coceral analysts slashed to 273.8m tonnes their forecast for the European Union grain crop this year, 10m tonnes below an estimate made in March, when the region’s lack of rain was only beginning to raise concerns.

The downgrade, which took Coceral’s estimate marginally below that of many other observers, reflected significant drops to hopes for all the big three western producers – France, Germany and the UK – where a historically dry springs led to drought being declared in some areas.

Trade implications

However, it was the UK which, in percentage terms, suffered the biggest downgrade, with the estimate for the grain harvest slashed by 13.2% to just under 19m tonnes.

Biggest EU grain producers 2011, and (change on 2010)

1: France, 59.46m tonnes, -8.6%

2: Germany, 43.15m tonnes, -2.7%

3: Poland, 26.96m tonnes, +0.1%

4: Spain, 20.55m tonnes, +12.9%

5: UK, 18.95m tonnes, -6.2%

A harvest that size would leave the UK behind Spain, where persistent rains have raised hopes for the grain crop to 20.6m tonnes – a rise of 1.5m tonnes year on year.

Spain’s harvest prospects look likely to stem the country’s – typically large – reliance on imports to supply its livestock industry.

Indeed, Spain has historically been the largest buyer of UK grain, taking 1.3m tonnes of wheat in 2009-10, and more than 400,000 tonnes of barley.

Winners and losers

The UK downgrade reflected in the main, lower hopes for barley, for which the harvest estimate was cut by 15.0%, or 800,000 tonnes, to 4.5m tonnes.

The country’s wheat crop was pegged at 13.9m tonnes, a reduction of 10.0%, or 1.5m tonnes, on the last estimate.

Coceral, the Brussels based grains industry group, estimated the French wheat harvest, Europe’s biggest, at 32.7m tonnes, down 3.7m tonnes on the March forecast.

However, these downgrades were offset in part by better hopes for some Eastern European countries, such as Bulgaria and Romania, which enjoyed better spring rains, besides an upgrade to the Spanish forecast.

Estimates for Poland, the EU’s third-ranked wheat producer which was also reported to have suffered unusually dry weather, were left largely unchanged.–3321.html

Resilient UK wheat exports beat official forecast

images (8)

Wheat exports from the UK have beaten official forecasts for 2010-11 with one month to spare, raising the prospect of a downgrade to a stocks estimate already pegged at a historic low.

UK wheat exports fell to 75,200 tonnes in May, the lowest of the 2010-11 marketing season, customs data showed.

The figure was also well below the 200,000 tonnes achieved in May last year.

Nonetheless, it took the UK’s total wheat exports in the season to 2.52m tonnes – enough to overtake the official forecast of 2.44m tonnes and with June data yet to be included.

Inventory revision?

The prospect of more wheat leaving UK shores than had been expected puts a further downgrade on the agenda for the official estimate of inventories as of the close of 2010-11, at the end of June.

The current estimate, of 1.51m tonnes, was described by officials as the tightest "in the modern era".

Indeed, Michael Archer, senior cereals and oilseeds analyst at the Home Grown Cereals Authority, told in May that a higher export number makes the balance sheet figures "difficult to add up".

Nor have the extra exports been balanced out by an uptick in imports which, at 66,800 tonnes, were below average levels for the marketing year.

Spanish purchases dry up

The export data showed a second month without shipments outside the European Union, trade which earlier in the marketing year took UK wheat to unusual destinations, such as Turkey and Vietnam, after supplies from the Black Sea were curbed by drought.

Within the EU, shipments to the Netherlands remained firm, at nearly 30,000 tonnes, while those to Spain, at 6,800 tonnes, remained at atypically low levels.

Indeed, Spain imported 570,000 tonnes of UK wheat in the first 11 months of 2010-11, half those of the same period the season before.

Spain, which unlike more northerly countries received ample spring rains, is expected to report a bumper harvest of its own this year, enough to overtake the UK to third place in EU wheat production.–3374.html

Iraqi Wheat Production At 1.8m Tons

images (5) Iraq’s wheat production amounts to 1.8 million metric tons this year and the country is due to become an exporter of the grain by 2015, Deputy Agriculture Minister Ghazi Al-Abudi said. 
Output is on course to reach 2.25 million to 2.5 million tons at the end of the season this year, the minister said on Wednesday at a press conference in Baghdad. 
"Production is due to reach 3 million tons next year and Iraq is expected to become a wheat exporter by 2015 in line with government plans," he said, Trade Arabia reported. 
Iraq produced 1.875 million tons last year, Amer Abdul Aziz, spokesman for the Grain Board of Iraq, said on July 19. 
The harvest of this season covers about 40 percent of total national demand of about 4.5 million tons, he said. 
"The country will probably import another 1 million tons of wheat before the end of the year after buying 1.5 million tons so far in 2011," Hasan Ibrahim, the board’s general director, said on June 7. 
Iraq tendered last week for 100,000 tons of wheat from all origins, with a bidding deadline of July 30.


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Hanoi, October 2008

Messrs: Foreign and Domestic Partners.

   Ladies and Gentlemen !

   Vietnam National Livestock Corporation ( Vinalivesco ) are very pleased to welcome all of you with our best regards.
  We are a State-owned Corporation established in 1996 and at the present being organized and operated in accordance with the model of Parent-Subsidiary Company, pursuant to Decision No. 2799/QĐ/BNN-ĐMDN dated 17th October 2005 by the Minister of Agriculture and Rural Development of Vietnam.
  Over the past 12 years of development and growth, nowadays Vinalivesco comprises the Holding – Parent Company ( which is composed of the Head Office of Corporation, 01 Branch and 04 Accounting – Dependent Units ), 24 Joint Stock Companies of whom are of Vinalivesco’s investment capital including 04 Subsidiaries, 20 Associated Companies and 01 Joint-Venture Company located in Hanoi, Hai Phong, Ho Chi Minh City and other provinces and cities all over the country. The Holding – Parent Company will be privatized since 2009 and its stakes to be governed by the State.

    vilico_220006We welcome and are wishing to cooperate with domestic and overseas partners on the basis of long term mutual benefits in the following main field:

  • Financial investment, technology transfer of livestock & poultry husbandary and animal feed production.
  • Production, processing, trading, import and export of livestock and poultry products, foodstuff, raw materials and animal feed, veterinary medicines and veterinary materials; agriculture, forestry and aquatic produtcs; machines, equipments and spare parts for livestock production, foodstuff processing and other products…
  • Real estates, hotel services, office and apartment for lease.
  •     We firmly believe that when VietNam is the member of WTO, with the assistance from compentent authorities and the long term and close cooperation with the Foreign and Domestic Partners, the livestock industry of Viet Nam in general and Vinalivesco in particular will continue to develop strongly day by day for more achievements in the near future.

        On behalf of Vietnam National Livestock Corporation.
        Chairman of Board of Directors.
        Dr. DOAN XUAN TRUC