I was very impressed with the people and technology that they are beginning to utilize in ag production all across E. Europe. For those that can afford up-to-date equipment and sufficient N,P, and K, yield have grown by over 40% in the last three years. This can not continue forever, but even half that pace is incredible for the future.
We spent most of our time in and around Novi Sad, Serbia. We were hosted by MK Group, a solid company spending a lot of time and money expanding in the agriculture industry of eastern Europe. They took us around to a few of their operations including elevators, farms, sugar beet processing facilities, and offices. We spent a lot of time on the road including the day we traveled from Novi Sad, to the Danub River near Vukovar, Croatia, to Belgrade, to Pancevo and back to Novi Sad all in one day.
This is a link to a video that includes the sugar beet factory, winter wheat near the Danub River, and the process of bagging NPK fertilizer.
http://www.agreportsnetwork.com/cms/other-countries
These are pictures from a fertilizer and seed storage facility in Novi Sad, Serbia.
This is the storage facility in Pancevo that is located on the Danub River. This grain facility is a great location for MK, as it has access to loading barges. Last year 250,000 metric tons flowed through this facility. I see a lot of potential for this location.
We spent one day in Kiev, Ukraine. Just outside Kiev we toured a state-of-the-art facility, even by an American's standards. They had 8 newly constructed bins totaling over 2 million bushels, and two new corn dryers. All of the bins had temperature cables (to keep a close eye on storage issues). Unfortunately it was dark, so I did not get any pics of that.
On our way back from Ukraine, we stopped and visited the Azotara NPK fertilizer plant in northern Serbia (shown in the video). Through discussions it seems that if it weren't for continued credit problems farmers would keep showing strong growth in yields. Some of the farmers are having trouble borrowing money to buy fertilizers and seed this year, so they are being forced to cut back on the fertilizers to the tune of 20% year over year. Another thing holding back the yields is the continued restriction of GMO hybids in Europe. This alone could instantly add, in my opinion, another 10% to yields, as it is easier and less labor intensive to manage insect and herbicide resistant hybrids.
They have figured out the good hybirds, Dekalb 51-43 is a very popular hybrid in the U.S. (the GMO version of course).
Finally thing that surprised me the most as I was introduced to more and more of the employees at the MK Group, I could not believe the amount of young people holding higher positions. After I finally asked the manager about this he explained that the younger generation is much more open to new technologies and also have a better work ethic because they did not experience communism like the older generation did. He was right as a lot of the people I talked to had a good understanding of why they held the position they did, and what it took to keep it. My dad and I joked that their country is just finally getting over socialism, while our seems to be heading into it.
Here are a few pictures of MK's farm near the Danub River. You can still see how it was operated under communism.
This is a very common site to see in the back of most houses in the villages.
In conclusion, there is a lot of potential of agriculture all through out eastern Europe. Roads are being built, newer equipment is being brought in, people are getting educated, and when they start getting better cash flow again, I see stiff competition in the crop production business. I hope they see the potential overproduction and build some demand in their country.I have more photos of monuments and site seeing, mostly taken from a car going 60 mph (which seemed to be the pace of the trip). I will share them later as I find time.
Any questions, let me know.
