Grain prices in Russia fail to cover production costs

In Russia, grain prices remain below producers’ expectations, failing to cover the costs of cultivation. Specifically, current wheat prices do not allow farmers to recoup production expenses, posing significant challenges for agro-holdings. Companies are forced to adapt to market volatility by employing flexible sales strategies.

The agro-holding “Step” has already begun selling grain from the new harvest, but according to General Director Andrey Neduzhko, prices remain unsatisfactory. “The pricing dynamics are currently unfavorable, and forecasts for price trends remain flexible,” he noted. At “UK AgroAktiv,” part of “Progress Agro,” sales of the new harvest have also started in small batches. General Director Sergey Shevchenko reported that prices are showing mixed trends: declining in Krasnodar Krai while rising in the Volga region, driven by seasonal increases in supply and overall market volatility.

The situation is equally concerning for the “Labinsky” agro-complex, with operations across 17 districts of Krasnodar Krai. General Director Alexey Skorobogatov emphasized that current wheat prices completely fail to cover production costs. At “AgroGard,” sales have begun with winter barley, but as General Director Pavel Tsarev noted, wheat prices do not meet expectations. The company actively monitors market dynamics and prioritizes economic efficiency, utilizing its storage facilities to wait for more favorable price offers.

Tags: Russia, grain, wheat