Lowest harvest since the 1950s – revised Swedish forecasts

Extreme weather conditions in the summer have clearly influenced Swedish agriculture. When harvesting grain, oilseeds and woody cereals throughout the country, Mr Lantmännen can say that the result is lower than the previous estimate of 4.2 million tonnes. According to Lantmännen, Sweden's total harvest is 3.5 million tonnes, compared with 6.2 million tonnes for the five-year period, nearly half of a normal year.

"Lantmännen came out with its harvest forecast in July and our estimate was that we would have the lowest crop in over 25 years, and now, when we have a lot of effort, we can say that it is rather the worst harvest. since the end of the 1950s, says Lantmännen cereal manager Mikael Jeppsson.

The lack leads to higher prices

A crop almost equal to half of Sweden will severely affect the operations of Lantmännen and farmers. Lantmännen is now working intensively on the planning and supply of cereals to its own industries and customers in Sweden and in the export market.

"A large part of Swedish food production has suffered from drought and, after the weak harvest of the year, Sweden is not self-sufficient for its staple grains." Dairy, meat production and beer is also negatively affected.The shortage of Swedish raw materials will lead to higher food prices, according to Mikael Jeppsson.

Price Strategies for Dry Years

"The agricultural industry and the vegetation are strongly affected by the weather and it is possible that several years of harvest are bad.In Lantmännen, the producers are already selling us grain.Before the harvest 2019, we are working to transmit important messages to farmers, such as the importance of risk analyzes and new strategies for grain sales, for example, dividing the crop into several sales opportunities to reduce risk, "says Mikael Jeppsson.

At the end of the harvest in 2018, the next harvest year begins on the farms.

"Large areas of wheat have been sown and Swedish farmers who are contracting now will be able to benefit from a high grain price.The big autumn seed is a positive start for the 2019 harvest year. says Jeppsson.

This article was published on Friday, October 26, 2018