Drought cuts Serbia’s corn and soybean yields, threatens higher meat prices

Prolonged drought in Serbia has significantly reduced corn and soybean yields, particularly in Vojvodina, the country’s key agricultural region. According to agricultural economist Zarko Galetin, the weaker harvest is already creating conditions for higher feed costs, which could eventually push up prices for meat, meat products and milk.

The situation is particularly difficult for corn, one of the main components of animal feed. Soybean yields have also fallen well below average. Sunflower has coped better with the lack of moisture, although its yields are also expected to decline from previous years. Domestic sunflower prices are currently around 52 dinars/kg, broadly in line with last year’s level.

Lower supplies of corn, soybeans and sunflower meal are expected to gradually feed through the production chain. Feed prices could rise first, increasing costs for livestock producers. The impact on retail meat prices is likely to emerge with a lag as farmers initially rely on existing stocks and contracts.

Logistics problems caused by low water levels on the Danube are adding further pressure. Restrictions on river transport are forcing some cargoes onto more expensive road and rail routes, raising costs for grain and oilseed exporters. Serbian producers supplying the EU market also face additional costs associated with meeting European production and quality requirements.

The outlook will largely depend on the results of the autumn corn harvest, which will reveal the actual scale of crop losses. Serbia’s domestic market is also closely linked to global grain and oilseed markets, meaning any further increase in international prices could add to pressure on feed and food costs.

Tags: weather conditions, corn, prices, soybean, meat, Serbia, drought, sunflower meal