The Czech Republic has witnessed exceptional grain crop in MY14/15. Record yields and average but sufficient quality will cover both the domestic and export demand. Outlook for MY15/16 has been very positive, however, it will not exceed the level of MY14/15.

General Information:

MT = Metric Ton

MY = Marketing Year. Post and USDA official data both follow the EU28 local marketing year of July to June except for corn which follows an October to September calendar.

An exceptional grain crop in the Czech Republic in marketing year (MY) 2014/15 has been the third highest one since 1990. Above average yields resulted in a copious crop and a large surplus of grains on the Czech market. Original estimates published by the Czech Statistical office in October 2014 had indicated very good crop but the final data published in February exceeded the original expectations. Total crop in MY14/15 reached 8.78 million MT of grains.

For comparison, the grain crop in MY13/14 totaled 7.51 million MT. As MY13/14 also slightly exceeded the average, the large surplus of grain on the market translates to increased stocks and lower grain prices. The market prices are, however, still almost double the guaranteed intervention price, so no intervention purchases of grain have been made since 2010 in the Czech Republic.

Satisfactory to rather average quality of grains can cover both domestic and foreign demand. Export markets for Czech grains are represented nearly 100 percent by the neighboring EU member states.

Sowing areas for grains in the Czech Republic have been gradually decreasing. The reduced grain area has been offset by steadily improving yields. According to the Czech Statistical Office estimates published in January, the total winter grain area for MY15/16 is lower by 3.4 percent compared to the same estimate for MY14/15, reaching 935,000 hectares. Estimates of spring grain planting areas will be published by the Czech Statistical Office in mid-June.

Outlook for MY 15/16 has been optimistic, winter crops are in good condition, with minimal winterkill, and spring planting conditions have been favorable. Winter crops benefitted from good planting conditions as well and developed fine thanks to the mild winter and absence of spring frosts.

Final Harvest Data as published by the Czech Statistical Office:

Sowing Area (000 HA)

Production (000 MT)

Crop/ Year

MY13/14

MY14/15

MY13/14

MY14/15

Wheat

829

836

4,701

5,442

Barley

349

351

1,594

1,967

Oats

44

42

139

152

Rye

38

25

176

129

Triticale

47

49

214

244

Corn

97

99

675

832

Wheat

Wheat production in MY14/15 went up significantly, by 741,000 MT, compared to previous year. Higher production has been caused by increase in wheat area (both winter and spring wheat) and yields. Higher yields are largely owed to the beneficial weather conditions. Perfect setting during planting period, a mild winter and a warmer spring (March) allowed very good development of crops.

The quality of MY14/15 wheat has been variable, as some regions faced rainy weather during the harvest. Some of the lower quality wheat has been used as biomass (120 MT in MY13/14 and 150 in MY 14/15 according to Ministry of Agriculture's Grains Situation and Outlook Report). Wheat has been the most important feed ingredient. Feed use of wheat in MY14/15 rose according to an Ag Ministry estimate to 1.45 million MT. There is, however, still ample supply of average milling quality wheat available to satisfy domestic and export demand. The main export market for Czech wheat has traditionally been Germany.

The outlook for Czech wheat production in MY15/16 has been very good. Winter wheat area is estimated by the Czech Statistical Office slightly lower when compared to the previous year, at 755,000 HA. FAS/Prague estimates the total wheat area at approximately 820,000 HA, with a yield higher than 5.5 MT/HA but not exceeding 6 MT/HA.

Czech Republic's Wheat Exports

Partner Country

(000 MT)

% Change

2014/2013

July 2011-June 2012

July 2012-June 2013

July 2013-June 2014

World (Total), Out of which:

1,851

1,119

2,092

86.94

Germany

1,254

923

1,666

80.51

Poland

367

88

192

117.10

Austria

100

51

157

207.13

Slovakia

68

42

42

0.66

Italy

32

5

26

430.78

Hungary

0

1

6

470.23

Switzerland

1

1

2

25.16

France

0

2

0

- 77.97

Netherlands

0

2

0

- 93.74

Cuba

25

0

0

0.00

United Kingdom

0

1

0

- 100.00

Spain

0

1

0

- 100.00

Sweden

0

1

0

- 100.00

Barley

The second largest grain crop produced in the Czech Republic is barley. The situation and outlook can be described very similar to wheat: Record yield combined with increased areas of both winter and spring barley has led to exceptional amount of barley in MY14/15. Variable quality allows producers to cover domestic and export demand.

Barley is used in the food industry, mainly for malting, and in the feed industry. The Czech Ministry of Agriculture data captures the decreasing trend in barley feed use and estimates the feed consumption at 640,000 MT in MY13/14 going to 610,000 MT in MY14/15. Barley food use leveled off at 700,000 MT according to the Ministry's Situation and Outlook report in the last three marketing years. Malting barley has been an important export commodity as well, as wheat, with Germany being the main export market.

FAS outlook for MY115/16 is a slight drop in production, as the similar area of approximately 360,000 HA will be combined with lower yield, below 5 MT/HA.

Czech Republic's Barley Exports

Partner Country

(000 MT)

% Change

2014/2013

July 2011-June 2012

July 2012-June 2013

July 2013-June 2014

World

346

264

217

- 18.03

Germany

188

135

105

- 21.88

Slovakia

32

46

43

- 5.08

Austria

28

39

34

- 12.95

Poland

80

30

22

- 27.27

Italy

3

4

3

- 20.72

Slovenia

1

1

3

369.74

Romania

7

6

3

- 50.31

Hungary

2

2

2

6.94

Ukraine

2

0

0

- 8.01

Switzerland

1

1

0

- 90.88

Source: Global Trade Atlas

Corn

Reaching 832,000 MT in MY14/15, this is the fifth highest corn crop since 1990. It is exclusively because of a larger area, as the yield was rather average. Unlike with wheat, corn areas have been gradually expanding, having crossed the 100,000 hectare threshold in 2008. Because of this trend, Czech Republic became an exporter of corn instead of being a net importer.

Besides export, corn has been used mainly in the feed industry, where it substitutes with wheat to a certain extent. The Czech Ministry of Agriculture estimates the feed use in MY14/15 at 410,000 MT.

FAS/Prague foresees the situation in MY15/16 very similar to the current MY14/15, with the corn area oscillating close to 100,000 HA and yield being a better average.

Czech Republic's Corn Exports

Partner Country

(000 MT)

% Change

2014/2013

Oct 2011-Sept 2012

Oct 2012-Sept 2013

Oct 2013-Sept 2014

World

553

392

281

- 28.25

Austria

79

136

125

- 8.00

Germany

297

147

77

- 47.56

Slovakia

38

50

41

- 19.60

Poland

117

36

34

- 6.32

Italy

1

8

2

- 74.83

Netherlands

20

13

0

- 98.49

Source: Global Trade Atlas