“This increase is the result of better average yields and larger area planted for cereal crops over last year,” the USDA noted in the report. “The biggest production increases are forecast for rye (27.3%) and mixed grains and triticale (28.4%). Feed-grain production increased in MY 2017-18 due to expanded on-farm use for livestock feed.”
Wheat production in Poland is forecast at 11.3 million tonnes for the 2017-18 marketing year, up 4.4% from the previous year, the USDA noted. Wheat acres are forecast to increase 1% to 2.4 million hectares, the agency said, while domestic consumption is projected to rise behind higher industrial and feed usage.
The amount of acreage planted to corn in Poland is forecast to climb 9.2% in the 2017-18 marketing year to 650,000 hectares, according to the USDA.
“Polish farmers shifted more acres into corn based on expectations of higher returns and favorable opportunities to export,” the agency noted. “Polish corn end-users include the feed industry, on-farm usage for livestock feed, the biofuel industry, and the potable-alcohol industry. Almost 80% of domestic corn use will be fed to livestock in MY 2017-18, driven largely by Poland’s expanding poultry sector.”
On-farm animal production is a key factor driving an expected increase in 2017-18 mixed grains and triticale production, the USDA said.
The USDA also said it expects an increase in cereal milling and processing in Poland in the 2017-18 marketing year, which, if realized, would mark two consecutive years of gains.
“In MY 2016-17, cereal millings increased by 4.5% over the previous year, and reached 3.7 million tonnes, according to the Polish Main Statistical Office,” the USDA noted. “Groats, flakes, and flour production account for the largest production increases. Bread and pasta production is forecast to slow in 2017-18 and stabilize at levels consistent with last year. Strong profit margins for cereal processers increased capital investments, especially in the milling and pasta sectors. Higher pasta production has increased demand for imported durum during the past few years in Poland. Strong demand for feed is forecast in MY 2017-18, driven by poultry production and industrial feed demand.”