Half of the grain storages are empty waiting for the summer harvest

By: STA Date: 2023. 05. 19. 10:30

Based on the surveys, the crop may currently be half of the grain storage capacity of domestic producers. This ratio is very high compared to previous years, but the free capacities are certainly sufficient for the amount of crops from the summer harvest. Stocks accumulated from last year’s harvest and imports received in recent months provide the processors with an adequate amount of raw materials.

(Photo: Pixabay)

In the grain market situation, which has become tense due to the Russian-Ukrainian war and Ukrainian grain imports, with the summer harvest approaching, the Ministry of Agriculture considers it important to review the export sales processes that play a central role in terms of arable crop production and to share information about domestic storage capacities with the sector. With the cooperation of the National Chamber of Agrarian Economy, the producers’ storage capacities were assessed in May, based on the voluntary data provided by economic operators. According to estimates, out of the total domestic storage capacity of 20-22 million tons, the farmers reported a capacity of 5.6 million tons, on the basis of which they currently indicated a free capacity of 2.9 million tons, which represents a ratio of 52%.

The received data already represents a large enough sample, on the basis of which it can be said that in Hungary there is roughly half of the storage capacities

Compared to the past years, this is a very high rate, as the warehouses should typically be empty already in May, said the state secretary. On the one hand, it follows from this that there is sufficient storage capacity nationally for the preliminary estimated 7 million tons of crops planned to be harvested during the summer harvest. On the other hand, the data also show that, based on the grain import dynamics of Ukraine in the past period – particularly the import of corn -, last year’s harvest results, as well as the declarations regarding the decrease in industrial production, domestic use and accumulated stocks, and market information, the country’s industrial An adequate amount of raw materials is currently available for processors.

Zsolt Feldman explained that in the first quarter of 2023 a total of 1.3 million tons of produce were sold on export markets

In January-February, 896,000 tons were sold, and in March, based on a preliminary estimate, around 400,000 tons were sold. Of this amount, wheat accounted for nearly 600,000 tons and corn for 365,000 tons. A total of 156,000 tons of barley and 46,000 tons of sunflowers left the country. This means that due to last year’s drought and changes in foreign market demand, exports are 35% below the average of the last five years. The state secretary added that the preferential financing of the MFB Food Industry Current Assets Loan Program is available again thanks to the state interest subsidy, which helps domestic processors to purchase crops planned for harvest.