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Bosnia-Hercegovina Grain Update
Total sown area for wheat this fall is 93,000 ha, increased for about 30% if compared to 2002/2003. Still, the total area is down if compared to 2001/2002.
An average yield is 2.7 MT/ha and the total production is estimated at 251,000 tons.
Winter wheat was sown in the Republika Srpska1 on 72,000 ha, which represents a significant increase compared to last year’s 46,000 ha. Reasons for such increase were favorable weather conditions for sowing, high wheat prices on the market and subsidized seeds and fertilizer purchases.
In the Federation of BiH, this fall’s planting intentions were 23,600 ha, but the realization was around 90%, or 21,000 ha. The area is down if compared to last year’s 26,000 ha.

The corn production is around 645,000 MT, down for 30% because of the drought that affected crop production in wider region. The harvested area was 230,000 ha. Expected production was around 4MT/ha, but corn suffered because of lack of soil moisture in sowing period and during entire growing season.
Three-fourths of corn area is located in the Republika Srpska and one-fourth is in the Federation. Corn is mostly used for feed and only small portion for human consumption.

Total sown area for winter barley is 15,253 ha and an average barley yield is around 2.5 – 2.7 MT/ha.

The drought that affected the whole region in the previous growing season also affected BiH production of grains, mostly wheat and corn. Since the traditional suppliers (e.g. Hungary, Croatia) are also affected by drought and have limited exportable supplies, the millers are forced to look for some other sources of wheat. At the moment the demand for wheat is big since many of them are running out of their supplies made earlier this year. In previous months the wheat was mostly imported from Hungary but it seems that Hungarian supplies are almost exhausted, except for some lower quality wheat. Wheat prices are continuing to rise. Prices of bakery product rose for 20% in last three months.
The demand for American wheat is quite big. Hard Red Winter has been imported through the monetization program since 1997 and was available at the Port of Ploce in Croatia for local buyers. The millers appreciate the quality of American wheat and they learned how to blend it with lower quality wheat in order to get good quality of their products. The millers estimated that they would need at least 150,000 tons of Hard Red Winter (12% proteins) until the next harvest.
The country’s economy is slowly recovering, the monetization program is downsizing and commercial sales are expected to replace food aid. USDA has made available export credit program GSM-102 for purchases of different U.S. commodities through local banks. So far two local banks are approved but soon the number will increase.
The main constraint for commercial imports of U.S. wheat is existence of a number of small mills, unable to import larger quantities of wheat and to make larger stocks. Those mills usually buy small quantities of wheat from neighboring countries such as Hungary (currently FOB prices are around 180-185 Euros ) and use on-truck transport . A list of bigger capacity BiH mills and buyers is given in Annex I.
The demand for corn is also big, mostly because of growing broilers and eggs production. BiH usually imports around 150,000 MT annually but because of smaller crop this year imports may go up to at least 200,000 MT.

MGR Archive 29.11.2003
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Region Type Price  
Russia Rapan $ 700
USA Jupiter Rice $630
USA Calrose #1 $830
USA Calrose #1 Paddy $480
EU Prices Baldo €660
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