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Profitability of grain production strongly depends on the region

Profitability of cultivation of cereals and some oilseeds in the north, center and south of Moldova can differ many times. The main reasons for the very different profitability are the big difference between the soils, rainfall and "demand prices" for agricultural products in the northern and southern parts of the country, Logos Press reports.
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Profitability of grain production strongly depends on the region

The analysis of the economic efficiency of grain rotations, conducted by Iurie Rieja, an expert in agro-marketing, shows that the highest level of profitability – on average about 400 EUR/ha – is observed in the northern districts: Ocnita, Donduseni, Briceni, Edinet, Riscani, Glodeni, Floresti, Soroca, as well as in Ungheni.

In most districts of the central zone of Moldova – namely, Falesti, Singerei, Teleneşti, Orhei, Criuleni and Anenii Noi – the profitability of grain production is about 200-300 EUR/ha. The corresponding indicator is lower than this level in the districts of Rezina, Calarasi, Straseni, Nisporeni, Ialoveni, Causeni, Stefan Voda and Cantemir.

The lowest profitability of grain cultivation is recorded in Basarabeasca district, where the grain sector has generated so far a profitability below 100 EUR/ha.

The calculations were made taking into account the current wholesale prices for grain and rape in Moldova. Obviously, as the situation on the grain market develops during the current marketing year, the price conjuncture may change significantly.

As the author of the study notes, the profitability of grain crop rotations in Moldova is in direct dependence on soil bonitet, which noticeably decreases from the north to the south of the country, as well as the distribution of precipitation (similar picture). In addition, near Giurgiulesti port, especially in Cahul district and parts of Gagauzia, traders offer farmers higher purchase prices for grain, which partly compensates for the lower productivity of their fields due to poor soils and severe moisture deficit.


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