With an average yield of 20-25 kv / ha and costs for technical funds rising sharply, almost all producers, despite the fact that they can count on prices above 50 € / k, consider the vintage 2021-2022 to be negative, as they have lost in the best of cases a large part of the company’s net profit
With average yields of 20-25 q / ha or even lowerbecause heavily conditioned by the bad weather, this year in FoggiaAlthough the first quotations on the commodity exchange in Dauni’s capital were around € 58 / q + VAT for fine durum wheat, the economic balance in the cultivation of durum wheat often broke even or was negative, except in most cases lucky when I production costs has increased significantly compared to 2021.
Cost increase for all companies
That is what he claims Marcello Martinoagronomist responsible for the management of several cereal holdings representative of the Foggia area and himself producer of durum wheat in the countryside of Manfredonia and Foggia, on the basis of real costs incurred by Foggia farmers, discovered from the purchase invoices of fertilizers, seeds, pesticides and other technical means necessary for the cultivation of durum wheat. “It is impossible to draw up an economic balance valid for all Foggia durogranicole holdings, given the significant differences between those who turn to contractors for the various cultivation operations and those who have their own fleet of agricultural machinery and equipment. In any case, all companies have experienced sharp increases in production costs, especially with regard to those, more and more, who use contractors who have had to raise their tariffs. Only the larger companies have managed to achieve a better economies of scale, despite the fact that they are in any case subject to a generalized increase in costs’.
Comparison between vintages 2020-2021 and 2021-2022
From comparison between the last two durogranic years it is clear that the cost of agricultural work (plowing, harrowing, combine harvesters, etc.) performed by contractors has increased by an average of 20-30%. But even those with their own machinery and equipment have had to endure the dramatic increase in the cost of agricultural diesel, maintenance costs, spare parts costs and everything in between.
“THAT agricultural technical means has undergone significant increases, often very high – Martino emphasizes -. The price of frog it has grown in direct proportion to the increase in the price of durum wheat recognized by the producer: in the agricultural year 2020-2021 it was equal to 52-56 € / q, including VAT, compared to a price of wheat obtained in the previous year (2019/2020) corresponding to around 30 € / q, instead of in the 2021-2022 vintage it jumped to 78-82 € / q, including VAT, compared to a price of wheat obtained in the previous year (2020 / q 2021), which has risen to 55-57 € / kv. The price of fertilizerand especially that of nitrogen fertilizerhas increased by more than 100%: exemplary is the caseagricultural pollutants, whose costs have tripled and go from 30-35 € / ki 2021 to 90-110 € / ki 2022! The price of pesticides it rose slightly less from 2021 to 2022, averaging 10-15%, after always being quite high! Minor increases recorded other cost items, such asgrain fire insuranceie remedial contributionthat technical supportbut it is still increases that weigh on the economic balance of the crop ».
Revenue equal to costs or even lower
In fact, in the Foggia area, while the average price per hectares for durum wheat in 2021 was 600-700 € / ha, in 2022 it almost doubled and reached 1,000-1,200 € / ha. “With an average yield of 20-25 kv / ha, but in several areas significantly lower, even 10-15 kv / ha, and with current prices, in sharp decline, currently equivalent to about 50 € / qie revenues offset costs or become even lower“.
Even those who produced in the supply chain suffered from the increase in costs
Even those who produce durum wheat by joining one supply chain contract, concludes Martino, has discounted the sharp rise in production costs. “On the contrary, perhaps more than others, because they are often forced to comply with the production specification, to perform a double nitrogen fertilization and a double antifungal treatment. And this in the light of low yields and often of not excellent quality, due to a dead weight of less than 77-78 kg / hl and with a content of proteins that can really be used for pasta production of less than 14% or 14.5%, which represents the minimum values from which almost all supply chain agreements begin to recognize the reward ‘.