A recent report prepared by the U.S. Department of Agriculture (USDA/FAS) predicts that the EU grain harvest will increase to 285 million tons in the 2023/24 season from 267 million tons in the 2022/23 season.

The Americans predict that all winter cereals will exceed the previous season’s sowing levels. After the severe drought and increased fertilizer prices faced by EU farmers in 2022, there is growing interest in more drought-tolerant and less labor-intensive crops. Wheat and barley, which are more drought-tolerant than corn, are expected to emerge in the crop structure.

The report indicates that the EU’s projected production of wheat (137.8 million tons), corn (64.4 million tons), barley (53 million tons), rye (7.75 million tons), oats (7.5 million tons), rice (1.4 million tons) and sorghum (656,000 tons) is expected to help ensure total consumption, which is estimated at 263.21 million tons.

The main use of grain in the EU is for animal feed, accounting on average for more than 60% of EU grain consumption. The report indicates that the EU will consume 158.8 million tons of grain for animal feed in the 2023-24 service, with corn, wheat and barley accounting for 85%.

The Russian invasion of Ukraine combined with soaring food prices continue to weigh on the EU’s grain balance sheet, which has resulted in stagnant overall grain demand.

Higher expected production is expected to reduce import needs for the 2023-24 season to 27.44 million tons, compared to 35.59 million, and allow grain exports to rise to 47.44 million tons, compared to 42.29 million this season.

Source: Wrp.pl