Favorable weather conditions have contributed to improving this year's harvest results. The forecast is now that the harvest will end with more than 6 million tons, in that case the highest figure in 6 years and only the third time during the 2000s that it exceeds 6 million.
We are still receiving grain and believe that we will pass 6 million tons, so it's very positive, says Magnus Kagevik.
Vulnerable situation
For Lantmännen, which owns a large part of the country's grain infrastructure in the form of facilities, the harvest result means an increase in revenue. For the third quarter, the operating profit (adjusted for non-comparable items) will now be 995 million kronor, an increase compared to the previous year (938 million kronor).
For the individual farmer, however, the situation is vulnerable. The world market price of wheat is currently not only at its lowest level this year, but also at its lowest level since the spring of 2020, in connection with the global outbreak of the pandemic.
It's a problem for farmers. We have very low grain prices, it affects and is very challenging, mainly for grain farmers, says Magnus Kagevik.
Low grain prices
According to Magnus Kagevik, it's an equation that doesn't add up at the moment, low grain prices combined with too high costs for input goods.
Somewhere, I think many farmers are still investing and hoping that prices will go up. It's still quite a long time until the next harvest. We also don't see that people are holding back on autumn farming.
