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Ukrainian Grain & Oilseed Market

Ukrainian Grain&Oilseed Market

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Canada - Profit margins down

03.06.2010 12:17 "Agro Perspectiva" (Kyiv) — Farmers’ cash receipts and operating costs both declined in 2009 compared to 2008, leading to a $10 million (0.3 per cent) drop in realized net farm income, according to Statistics Canada. Realized net farm income — the difference between a farmer’s cash receipts and operating expenses, minus depreciation plus income in kind — amounted to $3.6 billion in 2009, the federal statistics agency reported this week. The slight drop in 2009 (*) followed increases in both 2007 and 2008. Realized net income fell in four provinces: Nova Scotia, Quebec, Ontario and Alberta. In all four, declines in receipts exceeded declines in expenses. Realized net income increased in the remaining provinces. Nationally, farmers last year paid roughly 80 cents in operating expenses for every $1 in receipts they earned, down from 81 cents in 2008. During the past decade, this expenses-to-receipts ratio has fluctuated between about 78 cents in 2001 and 85 cents in 2003. (The ratio is calculated by dividing operating expenses by total farm cash receipts.) When depreciation charges are taken into account, the 2009 ratio rises to 92 cents for every $1 of receipts. Farm cash receipts Market receipts (revenues from the sale of crops and livestock) declined by $883 million to $40.9 billion in 2009. Livestock receipts fell $900 million to $17.9 billion, while crop receipts remained virtually unchanged from 2008 levels and amounted to $23.0 billion. The 4.8 per cent drop in livestock receipts was due largely to a sharp decline in the number of animals exported, as mandatory country-of origin labeling (COOL) legislation came into effect in the U. S. Another factor was lower demand for livestock products resulting from the global recession. The numbers of cattle and hogs shipped across the border in 2009 were down from 2008 levels by 33.3. and 31.7 per cent respectively. While slaughter cattle prices were relatively stable, slaughter hog prices resumed their decline after increasing slightly in 2008. In 2009, slaughter hog prices fell 4.7 per cent. Since 2004, they have declined by 28.8 per cent. A 1.6 per cent rise in receipts in the supply-managed sector (dairy, poultry and eggs) cushioned the decline in livestock receipts. The slight rise in crop receipts in 2009 (0.1 per cent) followed increases of 24.7 per cent in 2008 and 25.4 per cent in 2007. Grain and oilseed prices have fallen from their peak in 2008, in part because of above-average world production in 2008 and resulting high stock levels. The decline in prices was offset by an increase in the quantities sold of most of the major grains and oilseeds in 2009, as producers drew down their stocks from the bumper crop in 2008.

Agro Perspectiva

< Belarus’ export of goods 29.5% up in January-April

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03.06.2010

Agrarians Jan-Apr grapes sales averaged UAH2,026 per MT >

22.11.2024