Serbia has had record wheat yield this year, but the quality of its wheat is questionable. This is confirmed by the report of the Novi Sad Commodity Exchange stating that there had been a recent demand for high-quality wheat but not a single wheat seller was found in Serbia which wheat could meet the quality standards.
The so-called A1 wheat quality group sells at a significantly higher price of 24.2 dinars per kilogramme, while the standard quality wheat is worth 21.14 dinars per kilo.
“It is surprising that no-one was able to respond to the request for delivery of A1 quality wheat”, the Novi Sad Commodity Exchange officials say.
Experts point out that due to such situations in the market, wheat producing countries and wheat producers will have a lot to do a lot more to keep the old customers and find the new ones, like Egypt.
Professor Miroslav Malesevic believes this is a good way to test domestic producers. The A1 quality wheat is produced in small quantities, but also by smaller producers. Based on the sale of seed of these varieties in the total production, the share of top quality’s wheat in total production is only 20 to 25 per cent.
“The problem is that there is no separation of wheat as per quality when stored in silos in Serbia. When the two types of wheat of different qualities mix in our silos, the end result is the wheat of an average or below average quality”, Professor Malesevic says and adds the owners of large silos cannot vouch with certainty what quality wheat they have in storage.
He also says that domestic producers avoid growing high-quality wheat varieties because they give lower yields than others. However, if we want to reach the Egyptian market, which is being talked about these days, the share of high-quality wheat in total yield will have to be increased.
“It’s inconceivable that we should sell something else that is not top quality to Egypt. It’s such a demanding market, perhaps the most demanding of all. We can probably offer something in small quantities, but I am not sure about huge deliveries as long as the current situation persists”, Malesevic adds.
The Novi Sad Commodity Exchange also warned about the decline in the quality of domestic grain in yesterday’s report stating that there was no trading in wheat last week.
“It is very indicative to mention the price of wheat which ranges from 19 to 21 dinars per kilo, which is significantly above last week’s average. Such a price is formed primarily in relation to the quality, because as time goes by, the lack of quality wheat in the domestic market is becoming increasingly evident”, the Commodity Exchange says.
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