2011 March No 3 (10)

AGROMEDIA

MONTHLY I SSUE ABOUT AGRO MARKET

European Commission cancelled customs du-ties on imported grain

By the decision of European Commission, customs duties on imported feeding wheat and barley were cancelled since 24 February. In order to relieve feed re-lated problem in agricultural sectors, import of grain to EU without customs duties will be allowed until 30 June, 2011. Currently, customs duty on imported wheat is 12 EUR/t, barley – 16 EUR/t. Zero tariffs will be applied for approximately half of annual tariff quota of wheat of low and average quality – total 2.99 million tons and 306.2 thousand tons of feeding barley. Dacian Ciolos, EU agricultural and rural development commissioner, after vot-ing of Board Committee on this question, stated: “I hope that this decision will help reduce the tension in European grain market. Though the prices in world and European markets remain high, we are obliged to ease the situation until the end of trading year”. The analysis of world grain markets perspectives shows that the prices will re-main high, because world grain resources are declining: they are 62 million tons less than in the end of the last trading year. Spain companies expect using the cancellation of import customs duties in or-der to import feeding wheat from Australia, because it became problematic to buy grain in Great Britain. Some experts anticipate that cancellation of customs duties will have limited influence on market, because transportation of grain will require big expenses, and production is of low quality, besides, China usu-ally buys the bigger part of grain grown in Australia. The most severe drought during 60 years in China may influence world grain demand and prices. Despite the fact that more favourable weather conditions are forecasted for the middle of March, there are fears that it will be too late to save the harvest. Grain prices in Chicago market will be the highest since 2008 in the middle of February, and in China the prices have already beaten the record.

International Symposium on Agroterrorism

The International Symposium on Agroterrorism (ISA) 2011 will take place April 26-2S at Crown Center in Kansas City. Missouri, U.S.

The event will focus on the need to closely communicate and coordinate among private industry, law en-forcement, government agencies, science and academia and the health and medical professions in order to protect the global food sup-ply. Topics to be discussed will in-clude; identified threats to the food and agricultural sectors; genetically modified foods; synthetic biology: physical security: biosecurity; eco-nomic and trade concerns: and transportation issues.

This issue

Grain and rapes market Milk economy market

Fertilizers market

Agro technique market

Agricultural land market

GRAIN AND RAPES MARKET

Corn was bought at 663.2 LTL/t on av-erage in the second part of February, 2011 (7th week (02 14-20)) in Lithua-nian grain procurement companies, which was 29.8% higher than a month before (3rd week (01 17-23)). Compar-ing with the last year (7th week (02 15-21), 2010), corn price grew even 4 times higher within a year. Average rye procurement price in the second part of February grew 20.3% higher (up to 823.9 LTL/t), comparing with last month’s price, and was almost 3 times higher than during the same period of 2010. Average wheat procurement price made 848.7 LTL/t in the second part of February, 2010, and was respec-tively 7.7% and 2 times higher than in

the second part of January and in the second part of February last year. Aver-age feeding barley (II class) procure-ment price increased by 7.5% (up to 675.4 LTL/t) per month and was 2 times higher than during the same period in 2010. Rape was bought at 1,759.5 LTL/t on average in the second part of Febru-ary, 2011. Comparing with the price one month ago and one year ago, rape price grew higher by respectively 12.6% and 82.2%.

Future grain harvest in West Europe

Specialists estimate that area of winter rape crop in France is higher this year than a year ago by 1.3% and makes 1.47 million hectares. “Agra Euriope” has informed that in the southeast re-gion of the country, where more than a half of all rape is grown, thick cover of snow protects crop credibly from win-terkilling.

Cold poses no threat for rape crop in Great Britain. Area of the crop makes 637 thousand hectares and is 3-5 % larger than last year. While in Germany, sowing of winter rape was late because of rainfalls and there was not enough time for the crop to take roots. It is esti-mated that winter rape crop in Ger-many has reduced by 1.5%, compared with last year, and makes 1.44 million hectares. Rape harvest could make 5.5 million tons (5.7 million tons in 2010).

2.5 million tons rape import is pre-dicted in EU-27 states in 2010–2011. This would make rape import bigger by 14.7% compared with 2009-2010. It is speculated that rape import from Ukraine should increase up to 1.24 mil-lion tons. However, amounts of rape import from Russia, Belarus and Moldova are likely to reduce.

EU-27 states imported 116 thousand tons of rape from Canada during Au-gust-December, 2010. It is expected that at least 100 thousand more tons will be imported from Canada during this January-April (mostly to Portugal and Spain).

2

Lithuanian procurement prices of corn and rye have increased the

most in the second part of this February

Lithuania imported 72% more and exported 33% less grain in January,

2011 than in January, 2010

Lithuanian grain procurement compa-nies have imported 3,451 thousand tons of grain this January – 72% more than in January, 2010. Wheat (29,206 thousand tons) made a big part of im-ported grain, and was imported from Latvia, Poland, Denmark and Germany (average price – 883.1 LTL/t). Rye (847 tons) was imported from Latvia, Poland and Belarus (average price – 610.3 LTL/t). Rape (7,444 thousand tons) was im-ported from Latvia and Ukraine in January, 2010 (average price – 1,552.0 LTL/t). Lithuanian grain procurement compa-nies have exported 110,763 thousand tons of grain this January – that is 33%

less comparing with January, 2010. Wheat export amounted to 83 thou-sand tons. Wheat was exported to Lat-via, Denmark, Germany, France, Italy, Finland, Norway and Switzerland (average price – 756.0 LTL/t). Rye (759 tons) was exported to Latvia and Italy (average price – 908.0 LTL/t), and bar-ley (26,377 thousand tons) – to Latvia, Estonia, Ireland, France, Germany and Portugal (average price – 640.7 LTL/t). 52% less rape was exported in January, 2011 than in the same period in 2010 – 7,249 thousand tons. Rape was ex-ported to Latvia, Belgium and Finland (average price – 1,586 LTL/t).

CIS grain harvest smaller in 2010 than in 2009 by 28.8%

According to tentative data by CIS De-partment of Statistics, grain harvest made 134 million tons in former social-ist states. Grain harvest in Belarus made 7 million tons, Azerbaijan – 1.9 million tons, Kir-ghizia – 1.6 million tons. The largest grain harvest was in Russia – 60.9 mil-lion tons (37.3% less than in 2009),

Ukraine – 39.2 million tons (-14.8%) and Kazakhstan – 12.2 million tons (-41.5%). In Moldova, last year grain har-vest made 2.4 million tons (+11.5%), Uzbekistan – 7.4 million tons (+0.5%).

Procurement of certain feeding stock became more active in Lithuania in 2010

World wheat area expanding in 2011-12

In initial comments about prospects for the 2011 crop year, the Interna-tional Grains Council (IGC) on Jan. 20 projected a 3% rise in world wheat acreage in 2011-12 from the year be-fore.

The prospective gain was attributed to higher prices and a return to nor-mal abandonment rates.

"Assuming average 670 million tonnes (from 647 million tonnes m 2010-11)," the IGC said.

"The outlook for northern hemisphere grams crops generally appears favor-able at tins early stage, although much will depend on the extent to which growers expand plantings of spring crops, especially maize and barley."

Revising its supply and demand fig-ures for the current crop year, the IGC raised its projection for the wheat carryover to 185 million tonnes, up 5 million tonnes from its December forecast but down from 198 million in 2009-10.

Ukraine distributes grain export quotas

During its Jan. 11 meeting, the Ukrain-ian commission of the Ministry of Eco-nomic Development and Trade of Ukraine completely distributed quotas for grain exports among Ukrainian en-terprises-exporters, said the press-service of the Ukrainian Agrarian Con-federation on Jan. 12.

According to Sergey Stoyanov, the ge-neral director of the Ukrainian Agrarian Confederation, the representative of the Ukrainian Agrarian Confederation did not vote because other commi-ssion members did not support pro-longing applications until Jan. 14.

A range of enterprises were not able lo receive the conclusion issued by the Mi-nistry of Agrarian Policy and Food dur-ing the period of Jan. 4-6.

The government is expected to intro-duce an offer for additional grain export quota distribution, almost all surplus carry-over stocks.

According to data of the Ukrainian Agrarian Confederation, the surplus (excluding just distributed volumes) is estimated at the level of 5 million ton-nes. As of Jan. 7, grain carry-over stocks will also total the level of 5 million ton-nes, which is almost at the level of Jan. 7, 2010 carry-over stocks. That is without taking into account the possible inco-ming balance of the 2010-11 grain har-vest.

3

Import of feeding stock – industrial by-products (KN 2301-2306) has margin-ally increased in Lithuania in 2010, compared with 2009 – by 1.6% (in 2009 – 210.049 thousand tons, in 2010 – 213.399 thousand tons). Import of soy meal has increased by 7.11% (9,737 thousand tons) during the analyzed period. Import of by-products of maize starch production and fish flour de-creased the most during this period, relatively by 35.8% (4,319 thousand tons) and 29.43% (1,847 thousand tons). Import of sunflower meal has decreased by 13.1% (5,966 thousand tons) because of considerably in-creased prices of sunflower seeds and sunflower products. Import of cheaper feeding stock, such as sugar-beet turnip and especially rape and rape seeds turnip, increased relatively by 41.30% (2,273 thousand tons) and 99.25% (3,470 thousand tons) in 2010, compared with 2009. Soy meal made the biggest part of im-ported by-products – 68.7%. Last year, the main country of soy meal import remained Holland (5.6% or 111.059 thousand tons), the same as in 2009.

Sunflowers meal remains the second most important feeding stock in the group of imported industrial by-products. The main country of import-ing this product is Ukraine. Sunflower meal, imported from Ukraine, have made 54.1% (21,467 thousand tons) of total import of this product in 2010. Export of feeding stock (KN 2301-2306) – industrial by-products, has increased by 17.7% (31,185 thousand tons) and made 177,041.6 thousand tons in 2010, compared with the last year. The big-gest increase was felt in sunflowers meal (96.29%, 9,573 thousand tons) and soy turnip and meal (188%, 24,636 thousand tons) export, low increase – in turnip with a small amount of erucic acid – 16.4% (10,556 thousand tons) export. Export of by-products of maize starch production has decreased con-siderably in 2010 (35.71%, 4,146 thou-sand tons), export of sugar-beet turnip has also shrunk slightly – by 3.92% (0.964 thousand tons). Rape and rape seeds turnip made the biggest part of feeding stock export – 68.2% (84,162 thousand tons). The main countries of export of this

Worldwide grain export prices Lt/t

HRW – Hard Red Winter, SRW – Soft Red Winter, FCW – French Channel Wheat, CWRS – Canada Western Red Spring, YC – Yellow Corn * prices (Lt) provided based on the currency exchange of the Bank of Lithuania on the respective date ** comparing January with December, 2011 *** comparing January, 2011 with January, 2010

Data sourse: Agro Rinkos , Nr. 3 (153)

Grain State 2010 2011 Price change %

January November December January mounth ** year ***

Wheat JAV HRW 2 kat. 504,5 729,2 878,9 901,6 2,6 78,7

JAV SRW 2 kat. 479,9 721,5 850,1 856,1 0,7 78,4

Argentina 568,1 778,2 790,0 830,8 5,2 46,2

ES, France, FCW 1 428,1 756,2 868,4 913,3 5,2 113,3

ES, Germany, B class 457,9 767,9 892,0 924,3 3,6 101,8

ES, United Kingdom, forage 405,5 700,9 803,1 813,2 1,3 100,5

Canada, CWRS 13,5% protein 688,1 950,8 1122,2 1164,2 3,7 69,2

Corn JAV 3 YC 418,8 603,0 695,8 686,9 -1,3 64,0

Argentina 408,9 618,4 706,3 699,5 -1,0 71,1

Barley ES, France, forage 360,3 657,1 722,0 760,1 5,3 111,2

Australia, forage 360,0 569,5 617,3 689,4 11,7 91,5

Australia, malting 457,9 762,7 852,7 803,1 -5,8 75,4

FEFAC calls for investigation of contaminated feed Patrick Vanden Avenne, president of the European Feed Manufacturers' Federation (FEFAC), on Jan. 4 ex-pressed his satisfaction that com-pound feed industry own-control programs led to the discovery in Ger-many of a contamination by dioxins of fatty acids coming from a biodiesel manufacturer which has processed used cooking oils.

These products, which have been declared "for technical use only", were used in the production of fats destined to the feed chain. He pointed to the fact that all compound feed compa-nies which have received batches of the contaminated feed fats are fully cooperating with the competent au-thorities to trace all farms that could have been delivered com-pound feed containing the contaminated fats. He said that the implementation by the compound feed industry of own-control programs has substantially improved its capacity to detect dioxin contamina-tions entering the feed material supply chain. Vanden Avenne said that such incidents are regrettable and should not occur, given the track record of past contami-nation incidents. However, the highly unusual dioxin congener profile indicates a different, yet unknown contamination pathway in the biodiesel industry, which must be verified without delay.

He stressed the need to further im-prove traceability systems and testing plans at the level of suppliers of blended fats and mixed fatty acids, in particular when such companies are also manu-facturing products for technical use.

4

2011 carryover of wheat, com and soy-beans were reduced from December projections, while 2010 U.S. com and soybean production were reduced from November estimates. the U.S. Department of Agriculture (USDA) said in reports on Jan. 12 U.S. wheat carryover on June 1. 20i 1 was projected at 818 million bushels, down 40 million bushels, or 5%. from 858 million bushels forecast HI Decem-ber and down 158 million bushels, or 16%. from 976 million bushels m 2010. the USDA said m its Jan 12 World Agri-cultural Supply and Demand Esti-mates. U.S. com carryover on Sept. 1. 2011. was projected at 745 million bushels, down 87 million bushels, or 10%. from 832 million bushels m December, and down 963 million bushels, or 56%. from 1.708 billion bushels in 2010. Average corn yield was estimated at 152.8 bushels an acre, down 11.9 bushels from a record 164 ~! bushels m 2009. Harvested area was estimated at SI 4 million acres, up 2% from 2009. U.S. soybean carryover on Sept. 1. 2011. was projected at 140 million bushels, down 25 million bushels, or 15%. from 165 million bushels m De-cember, and down 11 million bushels, or 7%. from 151 million bushels m 2010. U.S. 2010 soybean production was es-timated at 3.329 billion bushels, down 1% from 3.375 billion bushels forecast in November and also down 1% from a record 3 359 billion bushels last year, the USDA said. The average soybean yield was 43.5 bushels an acre. down 0.4 bushel from the November" esti-mate and down 0 5 bushel from a re-cord 44 bushels m 2009. Harvested aiea was a record 76 6 million acres, up slightly from 2009. USDA-projected 2010-11 carryover numbers for wheat, com and soy-beans and USDA-revised 2010 produc-tion numbers for corn and soybeans all were below the average of pre-report trade expectations. Futures prices traded sharply higher for all three commodities following the re-ports.

"U.S. wheat ending stocks for 2010-11 are projected 40 mil-lion bushels lower fm January) as a reduction m expected feed and residual use is more than offset bv higher projected exports " the USDA said. Exports of U.S. wheat for 2010-11 were projected at 1.3 billion bushels, up 50 million bushels from December and up 419 million bushels or 48%. from 881 million bushels in 2009-10". "Exports are projected 50 million bushels lusher, reflecting the pace of sales and shipments to date and re-duced competition "with lower for-eign supplies of milling quality wheat.'" the USDA said World wheat ending stocks for 2010-11 were projected at 177.99 million tonnes, up I 27 million tonnes from December but down 20 71 million ton-nes, or 10%. from 197.43 million ton-nes in 2009-10 Glob-al 2010-11 wheat production was projected at 645.82 million tonnes. clown 690.000 tonnes from December and down 36 78 mil-lion tonnes. or 5%. from 682 6 million tonnes the previous year. Global wheat use was projected at 665 26 million tonnes, down 1.21 million ton-nes from December but up 13 5 mil-lion tonnes from 651.76 million tonnes m 2009-10. World exports were pro-jected at 125.64 million tonnes, up 60.000 tonnes from December but down 10.11 million tonnes, or 7%. from 135 75 million tonnes m the prior year. Australia production is lowered 0 5 million tonnes as heavy late-December rams and flooding further increased crop losses m Queensland the USDA said. '"Australia exports are reduced 1.5 mil-lion tonnes as quality problems limit export opportunities.': The USDA projected Australian 2010-11 wheat production at 25 million ton-nes and exports at 13.5 million tonnes.

U.S. 2011 wheat, corn, soybean carryover down

MILK ECONOMY MARKET

Prices on most milk products were increasing in Lithuania in 2010

Lack of raw milk in Lithuania, which was compensated by the import of more expensive milk from other countries, has influenced growth of prices on various milk products. Av-erage producer’s (VAT not included) sale prices on sour cream (30% fat-ness, prepacked at 450 g in polysty-rene packs) and butter (82% fatness, prepacked at 200 g in foil packages) in 2010, compared with 2009, started to grow from the beginning of year. For example, average pro-ducer’s (VAT not included) sale price on sour cream (30% fatness, pre-packed at 450 g in polystyrene packs) in the market was 11.97% lower in 2010, compared with 2009, butter (82% fatness, prepacked at 200 g in foil packages) – 1.58% higher, and in December 2010, com-pared with December, 2009, the prices relatively increased by 21.46% and 17.36%. Last year, average pro-ducer’s (VAT not included) sale price on sour cream (30% fatness, pre-packed at 450 g in polystyrene packs) in Lithuanian market made 5.12 LTL/kg and was 24.27% higher than in 2009, and price of butter (82% fatness, prepacked at 200 g in foil packages) has increased by 22.63% (up to 12.41 LTL/kg). In 2010, average producer’s (VAT not in-cluded) sale price of curd (thin, with-out additives, prepacked at 200 g) has increased by 5.45% (up to 6.00 LTL/kg), and drinking-milk (natural, at least 3.5% fatness, in 1 l package) –1.51 LTL/l (in 2009) to 1.64 LTL/l (in 2010).

Unused part of milk quota will not be transferred to national reserve any more

Name of a company

Average natural milk procurement price,

LTL/t

Milk, for which

deductions due

to quality were

not applied

when paying

Milk, for which

any deduction

due to quality

was applied

when paying

Average

milk pro-

curement

price

AB "Pieno zvaigzdes" companies group 1064,2 811,8 1053,4

UAB "Marijampoles pieno konservai" 1014,3 687 1011,1

AB "Rokiskio suris" companies group 970,2 747 964,5

AB "Zemaitijos pienas" 1030,9 850,5 1024,6

UAB "Vilkyskiu pienine" 965,1 692 945,5

AS (Agricultural society) "Salteksnis" 914,9 1171,2 982,1

UAB „Vikeda“, Kedainiai 1326,7 1326,7

Bariunai AS (Agricultural society), Jo-

niskis district 746,1 670,2 744,9

Dairying cooperative "Zalmarge" 804,6 556,7 797,2

Average milk procurement price, Lt/t 1014,8 800,3 1007,5

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Kazys Starkevicius, the Minister of Agriculture, has signed the order on 11 February, by which administration rules of milk pro-duction quota system were changed. “In order to reduce the administrative load on milk producers and to prompt them to take milk production more daringly, we took the decision that if the producer has not fulfilled 85% of holding quota, the unused part of quota will not be transferred to national (special) reserve any more. So, producers do not have to submit requests any longer for the unused quota not to be transferred the special reserve”, - the Minister has said. However, the producers, whose quotas have already been transferred to the special reserves in earlier quota years, will be able to take their quotas by necessity under the usual order (by submitting requests in municipalities under commission, made by the order of Minister of Agriculture).

Ministry of Agriculture reminds that quota of selling milk for processing was implemented by 75% in last 2009-2010 quota year, and selling quota for direct usage – 61%. Quota of selling milk for processing was implemented by 67.1% during ten months of 2010-2011 quota year (65.7% last year during the same period). It is predicted that after the end of this quota year, quota of selling for processing will be implemented by no more than 80%. Our country has not exceeded its milk quota until now. Besides, it is planned to increase milk quota by 1% every year for Lithua-nia and other EU member states. According to current EU law acts, milk quota system should remain until 31 March, 2015.

Average natural milk procurement price LTL/t of Lithuanian biggest milk shoppers

Procurement of raw milk in EU states was increasing in 2010

About 136 million tons of raw milk were bought last year in EU member states - 1.8 million tons or 1.3% more compared with 2009. 10.78 million tons of natural fatness milk were bought in EU in December, 2010 – 2.08% more than in December, 2009. During January-April, 2010, compared with the same period in 2009, less milk was bought in EU, but milk pro-curement grew from May to the end of the year. Milk procurement has grown the most in Germany, France, Ireland and the United Kingdom. Average EU-27 procurement price of

natural fatness milk made 105.86 LTL/100 kg in 2010 – 14.30% higher than in 2009. The biggest increase of raw milk prices was in Lithuania (37.85%), Latvia (34.62%) and Estonia (31.73%). Though procurement price of raw milk was growing in Lithuania last year the most, compared with other EU states, it remains one of the smallest. In 2010, average procure-ment prices of raw milk made 86.80 LTL/100 kg in Lithuania, 86.71 LTL/100 kg in Latvia and 82.58 LTL/100 kg in Romania.

Average procurement prices of cheese producer (VAT not included) in Lithuania were changing vari-ously, depending on the type of cheese. The price on Tilsit type cheese (prepacked) last year, com-pared with 2009, has increased by 14.34% (up to 12.60 LTL/kg), the average price on hard long mellow-ing cheese (prepacked) has re-mained almost the same and reached 20.12 LTL/kg, and the price on cottage cheese (22% fatness, without additives) has decreased only by 0.92% (to 10.79 LTL/kg).

According to tentative data, Lithua-nian milk processing companies have sold 17.79 thousand tons of sour cream (PCGS (Products Classifi-cation of Goods and Services) code 1051524120) in home market in 2010 and 5.67 thousand tons of but-ter, with the fatness under 85%, mass (including whey butter) (PCGS code 1051303000), which, com-pared with 2009, was relatively 1.99% and 21.39% less. However, sales of fresh non-matured or un-cured cheese, including whey cheese and curd (PCGS code 1051403000) in home market in 2010, compared with 2009, has in-creased by 1.06% (up to 28.65 thou-sand tons), and sales of grated cheese, cheese powder, blue cheese and other non-melted cheese (PCGS code 1051405000) has decreased by 27.54% (up to 9.45 thousand tons).

Lithuanian milk processing compa-nies sold butter (prepacked) at the average price of 12.98 LTL/kg in country’s market in the last week of this January (01 24-30) – 0.24% higher than in 52nd week of 2010. During the analyzed period, com-pared with the last week of last year, the price on Tilsit type cheese has increase by 8.80% (up to 13.71 LTL/kg) in Lithuanian market, and the price of hard long matured cheese has decreased by 7.68% (to 22.55 LTL/kg).

Russia has appreciated the quality of Lithuanian production

Three products of “Vilkyskiu pienine” were awarded at the biggest interna-tional specialised food industry, drinks and raw exhibition “Prodexpo 2011” in East Europe that took place in Mos-cow in 7-11 February. Cheese “Prusija” (“Prussia”) was awarded the gold medal in the inter-national contest “The best product 2 0 1 1 ” , a n d c h e e s e s “Legenda” (“Legend”) and “Zalgiris” were awarded at the contest “The choice of Russian shop chains 2011”. Lithuanian products were also no-ticed in exclusive contest “The best product 2011”, which took place be-hind the closed door. The special

commission of tasters who evaluated the products, presented for the con-test, according to their sensual char-acteristics, exterior design and the package, decided that the gold had to go to “Goudos” type cheese “Prusija” (“Prussia”), produced by AB “Vilkyskiu pienine”. According to Gintaras Bertasius, Direc-tor General of “Vilkyskiu pienine”, the company exports its production to Russia for already 15 years. About 6,5 thousand tons of product, the value of which reached 62,6 million LTL, were imported to this country in 2010. That makes 26% of all sales by “Vilkyskiu pienine”.

6

Number of cows reduces in Lithuania

According to 1 February, 2010 data by the farm animals register, adminis-tered by PI Agricultural Information and Rural Development Centre, num-ber of cows made 345.07 thousand units in Lithuania and was 3.14% lower than in the same period in 2010. This tendency of decline in the num-ber of cows has been noticed since last second half-year. On 1 February, 2011, number of dairy farms de-creased by 8.47% (to 90.62 thousand units). The number of small dairy farms decreased the most. The num-ber of farms, having up to 5 cows, de-creased by 9.08% (to 80.72 thousand units) during the analyzed period, compared with 1 February, 2010 data, and number of farms, having 6 to 20

cows, decreased by 4.71% (to 7.59 thousand units). The number of cows in these farms has relatively decreased by 8.63% (to 128.37 thousand units) and 3.67% (to 75.17 thousand units). However, the number of big dairy farms has in-creased in Lithuania in 1 February, 2010, compared with the same period last year. For example, the number of dairy farms, having 21 to 100 cows, has in-creased by 1.57% (up to 2.08 thou-sand units), and those, having more than 101 cow – even 9.05% (up to 229 units). The number of cows in these farms has grown relatively by 2.15% (up to 79.24 thousand units) and 3.53% (up to 62.29 thousand units).

World price rises finally slowing

EU-27 exported more milk prod-ucts in 2010 than in 2009

EU-27 exported 676.3 thousand tons of cheese last year to third countries – that was 17% more than in 2009. During the analyzed period, the big-gest increase was noticed in skim milk powder – 65.3%, reaching 377.7 thousand tons. EU-27 has exported 125.6 thousand tons of butter in 2010 – 6.7% more than in 2009, and the export of wheat powder has increased only by 0.1% and made 387.4 thousand tons. Export of whole milk powder and melted but-ter to the third parties has decreased relatively by 3.8% (to 444.1 thou-sand tons) and 9.2% (to 24.6 thou-sand tons) in 2010, compared with 2009.

The number of exported and im-ported cows is growing in Lithua-nia

According to farm animals register data, administrated by PI Agricultu-ral Information and Rural Develop-ment Centre, 206 cows were exported from Lithuania in 2010, while in 2009 – 109 cows.

Most of the cows (115 units) were sold for Latvian market. 6.66 thou-sand cows were imported to Lithua-nia last year – 43.4% more than in 2009. Mostly cows (3.45 thousand units) were imported from Poland. Export and import of cows was growing further in this January. 43 cows were exported from Lithuania in January, 2011, while none of cows were exported during the same peri-od in 2010. During the analysed pe-riod, compared with January, 2010, the import of cows has grown from 132 cows to 382 cows.

World market price rises are slowing, particularly for butterfat, with prices now meeting resistance, although demand still seems buoyant. Butter prices have changed little over the past fortnight, while powder price rises have been limited to $100/t. In Australasia, milk deliveries are behind expected levels as weather continues to impact supplies, although NZ sup-pIies are still expected to be 1% up for the season. US butter prices have slipped in recent weeks but the US only exported 8% (57,000t) of produc-tion in 2010. SMP exports are more influential with exports of 380,000t in

2010, nearly 50% of US SMP/NDM output. US SMP prices have been surging, with stocks light and manu-facturers struggling to meet con-tracts. EU butter is still expensive, and recent EU SMP price rises have eroded EU competitiveness. Production in the Northern Hemisphere will now step up seasonally. The Fonterra auction for April to September supplies (see pi) illustrates current market trends with prices up by 3.9%, after the WMP average soared by 7.9% to $4,320/t, the highest price since July 2008. SMP prices for May-September fell.

7

Milk powder exports banned

On the 18th of February, India banned all exports of milk powder and casein to rein in rising prices in the domestic market. The ban, announced by the Commerce Ministry, will come into effect immediately and will be valid until "further orders". Milk prices in India have risen by about 20% at the retail level and by 12% at the whole-sale level in the last 12mths, adding seriously to food price inflation, up 11% in the first week of February. "The export of all milk powders, ca-sein and casein products has been prohibited until further notice," said the Directorate General of Foreign

Trade. The decision came a day after an Empowered Group of Ministers, headed by Finance Minister Pranab Mukherjee, reviewed the price situa-tion of commodities. The government last month withdrew all export incen-tives on these products. India ex-ported milk powder and casein worth Rs5,000m (US$110m) in the last fiscal year. The Gujarat Co-op Milk Market-ing Federation (Amul) said the deci-sion would help contain prices. "This is a good decision which will help im-prove availability of milk and keep prices under check," an Amul spokes-man said.

Now leather protein found in fresh milk

The Chinese Ministry of Agriculture reported last week that fresh dairy products must be tested for leather-hydrolyzed protein in addition to melamine, after it learned that some milk contained the potentially poison-ous additive. The report said leather hydrolyzed protein is extracted from leather scraps waste and is added to dairy products to enrich their protein content. After testing, relevant de-partments must inform the authori-ties and trace the source of the prod-ucts if they find the banned sub-stance. The additive contains toxic chemicals including potassium di-chromate and sodium dichromate

used to soften the leather. Con-sumers are at risk of developing os-teoporosis from the chemicals. Long-term exposure to the chemicals could cause cancer and death in children, the report said.

AGRO TECHNIQUE MARKET

Producers of machinery are ex-pecting bigger turnover this year

After two years of decline, producers of machinery expect the growth of turnover this year. Farming and sow-ing machines manufacturer “Lemken” has announced that the recovering market of Russia and third parties will give the biggest push for growth of sales.

Income of “Lemken” has declined from 257 million EUR (886.65 million LTL) in 2008 to 203 million EUR (700.35 million LTL) in 2010 during the years of crisis. This year, the first time after 2008, it is expected that the income will grow. Signs of mar-ket recovery are mostly noticed in export markets – in Western states. Though slowly, but the number of orders is increasing in Russia and Europe.

It is estimated that production of plough will especially expand. “Lemken” plans to open a new fac-tory of 1,000 ploughs output this year in India, Nagpur. Small land ploughing implements for this mar-ket will be produced in the factory. Production to China will be supplied from the new machinery assembling company in Beijing.

“Lemken” machines have a demand in Lithuania as well. According to Solveiga Kalinauskaite, manager of “Konekesko”, the part of market, taken by Lemken machinery, is growing every year. “Lithuanians have appreciated good quality of good German machinery. Besides, the company produces a wide range of aggregates that every farmer could choose the machine, suitable for his farm the most”, - says S. Ka-linauskaite. According to the man-ager, our farmers are keeping in step with the progress, because the ma-chinery of new generation, pre-sented in the market, always finds its buyer.

Finnish producers presented tractor of the future

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Finnish company “Valtra” presented the idea of future tractor. Guests at “Valtra” anniversary celebration were first to see the reduced model of trac-tor of innovative design. Manufacturing of Valtra (Valmet) trac-tors started after World War II, after rearrangement of munitions factory into agricultural technique company. First 15 tractors ran out of the factory in 1951, and 9 more years later, “Valtra” was opened in Brazil, Ameri-can continent. As the company was getting closer to its 60th anniversary, creators of “Valtra” finally decided to take a look at least fifty years to the future and created the prototype of future tractor ANTS. These four letters means the series of currently produced “Valtra” tractors, but also is a play of words – reference to English word “ants”. Ants are very sociable and, consider-ing their size, especially powerful in-sects. Creators of new concept tractor have emphasized the similarity of ANTS with hard-working ants. ANTS consists of two main parts:

“soldier”, the power of which is 100 kW, and “worker” of 200 kW. Both these modules may be used together or separately. The cabin of operator may be mounted to the chosen mod-ule. When doing especially hard works, the modules may be joined, and their total power will reach 400 kW. The cabin of operator reminds a cap-sule that can turn to the different sides, rise and fall down. It can be at-tached to the front or back part of base model or at the top of it. The mo-bility of cabin means that actually there is no difference between the front and back parts of tractor ANTS. The creators of innovation considered the fact that future agriculture will swift to towards agroenergetics. That is why the engines, which could use biogases, produced in farms, and bio-diesel are produced. “Valtra” plans to present the model of future tractor at the biggest this year’s exhibitions of agricultural technique.

FERTILIZERS MARKET

Urea ammonium nitre (UAS-32) price has stabilized in the second part of January in France and in the region of the Black Sea. UAS price made about 732-745 LTL/t (under FOB conditions). Though UAS was offered for USA buyers at 795 LTL/t (under CFR conditions); however, there were no agreements made above 783 LTL/t at CFR price. Aver-age UAS price in USA remains 720-732 LTL/t (under FOB conditions). Despite some offers at 803 LTL/t price, customers refuse to buy at a price this high. Prices of ammonium sulphate also decreased by about 25.25 LTL/t in January and made 606 LTL/t (under FOB conditions). Sup-pliers from CIS reached to sell am-monium sulphate in home markets at 543 LTL/t at FOB price; however, customers were not interested in the price. In Brazil, price on ammo-nium sulphate has also highly de-creased and it was sold at 606-631 LTL/t at CFR price in February. The price of ammonium sulphate was even lower in China and made 467 LTL/t (under FOB conditions).

However, prices of ammonium ni-trate remained pretty high in Europe, and rate of EUR and dollar was especially favourable for Egypt production trade. Ammonium ni-trate for export was sold at 758 LTL/t at FOB price in the Baltic region in February.

Prices remain the same in world nitric fertilizers market

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A light flurry was felt in world urea production market in the second part of January, 2011 – both prices started to decrease and procurements have significantly decreased. The last car-goes, prepared for February market, were sold by 25.25 LTL/t smaller prices. Urea prices in USA also remain a bit lower – about 1,010 LTL/t (under CFR conditions) in ports of Gulf of Mexico. Because of decreased de-mand, part of cargoes for this region is directed to the other markets, and that could make a negative influence for the latter. However, Chinese urea is quickly snapped up at a pretty high price in Asia – more than 1,010 LTL/t (under FOB conditions). However, Thailand urea need remains at a con-ditionally low level because of gov-ernment’s efforts to control the prices, despite the fact that the resources are not big. Demand of urea has also de-creased in India. In the region of the Black Sea, the last trade agreement at the end of January was made at 909 LTL/t (under FOB conditions) price. So, the biggest part of urea for February trade has not been bought yet. A bit bigger recovery in the market is ex-pected in February-March. EUROCHIM plans to sell 10,000 tons of urea in March for production of urea ammo-nium nitre to Bulgaria. Also, 6,000 tons are planned to be sold to Italy. In Romania, no trade agreements were made at the end of January, because customers were interested only in urea prices, much lower than 1,010 LTL/t. In the Baltic region, small con-signments of urea for Europe were

sold at 934 LTL/t at FOB price, whereas customers from Latin Amer-ica required bigger consignments, but at smaller prices. However, no long term agreements were made, the same as in the region of the Black Sea. In February, because of demurrage of cargoes in Riga port, Russia plans to reduce sales of its urea cargoes in Bal-tic region and to direct bigger part of them to the South (port of Yuzhny). In Mediterranean region (port of Egypt), urea for February trade was sold at 1,040-1,048 LTL/t (under FOB condi-tions) at the end of January. Nigeria sold urea at 1,048 LTL/t under FOB price in surrounding markets. Trade agreements in the Middle East were implemented at 997 LTL/t under FOB price in the first month of the year. Urea was intended for East Africa and the prices were determined by na-tional subsidies. USA sold urea only at about 909 LTL/t in the Gulf. A certain decline climate is dominant in world urea markets. Essential activ-ity of trade is not predicted in the near future. The quite stable situation con-ditions fluctuation of prices within a very small range. Lately, storages of ports are overcrowded with urea re-sources, which is more important rea-son to decrease the number of agree-ments rather than the price. However, on the other side, some traders have already provided themselves with urea resources for the second half-year of 2011. That shows that pretty high prices of nitric fertilizers are ex-pected throughout the year.

The data on farming animals, kept in farms, were also collected during the census. In 2010, compared with 2003, 17% less cows, 21% less pigs, 62% less goats and 63% less rab-bits were registered in farms, hav-ing one or more hectares of used agricultural landed property. How-ever, 2 times higher number of sheep, 31% higher number of birds and 9% higher number of bee families was registered in 2010. Fewer farms keep farming animals; however, average number of farm-ing animals, kept in one farm, is higher. In 2003, on average 4.3 cows were kept in one farm, and in 2008 – 8 cows. The same tendency is observed while analysing the number of all types of farming ani-mals and farms that keep them.

While grouping the farms by the number of keeping livestock, it was noticed that the number of small farms, keeping 1-19 livestock, was decreasing, and the number of farms, keeping 20 and more live-stock, was increasing. The same tendency remained in grouping the number of sheep and goats growers.

A bit different situation is observed while analysing the changes of pig growers – the number of pig grow-ers was decreasing in all groups of farms. The biggest number of pigs, even 67% of all entity, registered during the census, belongs to big swine-breeding farms that keep 5000 and more pigs. There were 24 of such farms in 2010 (in 2003 – 25) and they kept 573 thousand pigs (55% more than in 2003).

The largest number of birds is also noticed in big poultry farms with more than 50 thousand birds. There were 22 of such poultry farms in 2010, and they grew 9,661.8 thousand birds and that made 85% of all birds kept in Lithuania.

Editorial: AB “Agrowill Group”, Smolensko g. 10, Vilnius Tel./fax +370 5 2335340; +370 5 2335345; e-mail: info@agrowill.lt Subscribe to free updates in the website www.agrowill.lt

The Department of Statistics per-formed a general agricultural census in 3 May – 30 September, 2010. Dur-ing the census, all farmers and family farms and all agricultural partnerships and companies, growing agricultural crops or having farming animals, were interviewed. The farms presented sta-tistical data about used land areas, kept farming animals, used agricul-tural machinery and outbuildings, family members, working in farm and employed workers, agricultural pro-duction methods, other, non-agricultural activity. According to interim data of census, 200 thousand farms, having one and more hectares of used agricultural landed property in land domain, man-aged 2,997.7 thousand hectares of land, out of which 2,757.8 thousand hectares were agricultural landed property. On average, 15 hectares of land and 13.8 hectares of agricultural landed property belonged to one farm (in 2003 – relatively 10.4 hectares and 9.3 hectares). According to these data, it can be considered that farms are becoming bigger. Farmers and family farms managed 86.8% of all agricultural landed prop-erty, and agricultural partnerships and companies – 13.4%. Agricultural part-nerships (65.2%) and stock, closed joint stock, investment companies

(25.4%) managed the biggest part of agricultural landed property of agri-cultural partnerships and companies. According to interim results of the census, 182 thousand of farms, having one and more hectares of used agri-cultural landed property, grew crops in 2010. The biggest decrease, by 58%, was recorded in the number of farms, having 1-2 hectares of crops. Also, the number of farms, having up to 1 hectare of crops (46%) and hav-ing from 2 to 5 hectares of crops (17%), was decreasing. The number of farms, having more than 5 hectares of crops, increased by 34%, compared with 2003. Crops took 1,990.7 thousand hectares in 2010. Compared with 2009, the area of crops increased by almost 50%. Comparative part of pulse, rape, perennial crop increased, compara-tive part of corn, field vegetables and potatoes decreased. 107 thousand farms, or almost twice as less as in 2003, grew corn in 2010; however, the area of corn was 20% bigger in 2010 than in 2003. The num-ber of rape growers and rape area has increased significantly. While 2.1 thousand farms grew 66.6 thousand hectares of rape in 2003, the number of rape growers increased to 7 thou-sand in 2010 and the area of these crop made 255.9 thousand hectares.

MARKET OF AGRICULTURAL LAND

Data sourses: Dairy Industry Newsletter 22 February ,

2011, Vol 22, No. 21, Agro rinka, No 3 (153)/2011 m.,

vz.lt , fendt.com, .valstietis.lt; ukiozinios.lt; vz.lt , manoukis.lt, .valstietis.lt; ukiozi-

nios.lt; zum.lt, savasukis.lt, Web sites of other companies and other public sour-

ces of information

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Interim main results of general agricultural census of the Republic of

Lithuania of 2010 announced