CEE REPORT FLIPPING PAGES.pdf

Costs of production on a per hectare basis increased by an average of 4% but due to increased yields, fell on average by US$8 on a per tonne basis - only marginally o#setting the dramatic sales price reduction. Turning to 2014 and the change is dramatic. 6DOHV SULFHV ZHUH DQ\ZKHUH EHWZHHQ and a huge 34% less (averaging 25% DFURVV WKH IRXU GDWD VHWV DQG UDQJHG IURP 86 W H[ IDUP

Fig 1.4: Comparison of 2013 vs. 2014 Net margin Per

Tonne Estimates Source: Brown & Co Data

2013 Net Margin 2014 Net Margin

Fig 1.3: Per Tonne Costs of Production DQG VDOHV SULFH IRU +DUYHVW 86 W Source: Brown & Co Data

Sales Price Finance* Machinery & Depn. Property Labour Variable Costs

Therefore in 3 out of the 4 cases (UK being the exception), wheat crops have lost money. Clearly, wheat is only one crop in a rotation but the sheer scale of switch has caught many business’ o# guard. Even though yields were up 10% on an average basis compared to 2013 harvest, all countries (except Ukraine) have seen an increase in costs of production which coupled to a 25% price decrease has meant that net margins (on a per tonne basis) deteriorated by a very signi%cant average of US$47/t in 2014 vs. 2013.

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CEE Land Market Brief 2014 05