Normal view MARC view ISBD view

Profitability of grain crops in Georgia

By: Tagauri, B.R | Centro Internacional de Mejoramiento de Maiz y Trigo (CIMMYT) | Tbilisi (Georgia) 14-17 Jun 2004.
Contributor(s): Bedoshvili, D [ed.].
Material type: materialTypeLabelBookAnalytics: Show analyticsPublisher: Tbilisi (Georgia) CIMMYT : 2004Description: p. 428-429.Subject(s): Crop husbandry | Field capacity | Maize | Production increase | Profitability | Sowing rates | Soybeans | Sunflower helianthus annuus | Wheat | CIMMYT | Yields AGROVOCDDC classification: 633.1147 Summary: Grain crops represent the major part of the annual field crops in Georgia in terms of the planted area, as well as the amount of the output. In 2000 they covered 74% of the total sown area. Since 1990 the grain production has shown 56% increase in the area (from 290,700 ha in 1990 to 453,700 ha in 2000). Despite this increase, Georgia is a net importer of grain and flour. Maize is a very important crop in Georgia, used for both human consumption and animal feed. During transition maize growing area has doubled, from 107,000 ha in 1990 to 219.600 ha in 2001. However, the 89%- increase in the area was followed by only 6.8% increase in the total output, by the significant yield decrease. Maize yield in Georgia is one of the lowest in the world and estimated to be only 25% of that in the developed countries (USA, Spain, and France ). Wheat is another important crop for Georgia. Annual consumption is about 1,150,000 Mt, out of which only one third is produced locally, and the rest is imported. Wheat is mostly grown in the Eastern Georgia without irrigation. During the transition years, wheat production area has increased by 26% (from 91,800 ha to 115,800 ha) and the production increased by 19% (from 257,700 Mt to 306,500 Mt). The data show that maize profitability gradually increases with the management level. There is not much difference between the respective sectors in the different regions. However, the difference is notable among the management levels by all indicators. A 20%- increase in total production costs (from Low to Medium input) gives a 75%- increase in the yield and 149%- increase in the net profit. Maize requires higher cash expenditures before sale than other cereal crops analyzed in this study ( wheat, sunflower, and soybean). At the same time it is the most profitable grain crop with the highest net profit and rates of return. Maize profitability is not very vulnerable to yield or price variations, as a small- scale farmer at a high management level can stand 69% decrease in the yield and 65% decrease in the price before getting a zero net profit. The data suggest that wheat is a low profit crop. Its net profit may easily turn into a negative figure under the low input scenario (small-scale, Eastern Georgia). It also exhibits quite a low return to total costs, indicating that wheat growing should not be an attractive investment option. However, wheat is still grown by many small-scale farmers in Eastern and Central Georgia to meet their family needs for bread and livestock feed. Besides, wheat maintains its attractiveness to poor farmers as it requires the least cash investment during the season and thus it turns to be an affordable crop for them (along with sunflower in Eastern Georgia ). And last not least, wheat is grown in the rainfed area where other crops would have even less profitability. Wheat profitability was found to be more sensitive to the changes of yield and price than those of other crops. A 24% decrease of yield can drive the net profits of even high-input level small farm in the Central Georgia to zero. Wheat positively responds to improving the crop management level by increased yields and profitability. Moving from the low to medium input level in the small-scale sector of the Eastern Georgia results in increasing yield by 50% and net profits by 118%. The data suggest that sunflower is a very low profit crop. Its net profits amounts to USD 70 per ha maximum under the high input level, while there is a high probability of losing USD 16 per ha under the low input scenario. Soybean yields in Georgia are relatively low and consist about 50% of that in the developed countries. Soybeans have the lowest profit and returns in the Western Georgia. The positive side is the low cash requirement, which is an important factor for poor farmers. Major financial indicators for grain crops are presented in the table below.Collection: CIMMYT Publications Collection
Tags from this library: No tags from this library for this title. Log in to add tags.
    average rating: 0.0 (0 votes)
Item type Current location Collection Call number Copy number Status Date due Barcode Item holds
Conference proceedings CIMMYT Knowledge Center: John Woolston Library

Lic. Jose Juan Caballero Flores

 

CIMMYT Publications Collection 633.1147 BED (Browse shelf) 1 Available 7Q630072
Total holds: 0

Abstract only

Grain crops represent the major part of the annual field crops in Georgia in terms of the planted area, as well as the amount of the output. In 2000 they covered 74% of the total sown area. Since 1990 the grain production has shown 56% increase in the area (from 290,700 ha in 1990 to 453,700 ha in 2000). Despite this increase, Georgia is a net importer of grain and flour. Maize is a very important crop in Georgia, used for both human consumption and animal feed. During transition maize growing area has doubled, from 107,000 ha in 1990 to 219.600 ha in 2001. However, the 89%- increase in the area was followed by only 6.8% increase in the total output, by the significant yield decrease. Maize yield in Georgia is one of the lowest in the world and estimated to be only 25% of that in the developed countries (USA, Spain, and France ). Wheat is another important crop for Georgia. Annual consumption is about 1,150,000 Mt, out of which only one third is produced locally, and the rest is imported. Wheat is mostly grown in the Eastern Georgia without irrigation. During the transition years, wheat production area has increased by 26% (from 91,800 ha to 115,800 ha) and the production increased by 19% (from 257,700 Mt to 306,500 Mt). The data show that maize profitability gradually increases with the management level. There is not much difference between the respective sectors in the different regions. However, the difference is notable among the management levels by all indicators. A 20%- increase in total production costs (from Low to Medium input) gives a 75%- increase in the yield and 149%- increase in the net profit. Maize requires higher cash expenditures before sale than other cereal crops analyzed in this study ( wheat, sunflower, and soybean). At the same time it is the most profitable grain crop with the highest net profit and rates of return. Maize profitability is not very vulnerable to yield or price variations, as a small- scale farmer at a high management level can stand 69% decrease in the yield and 65% decrease in the price before getting a zero net profit. The data suggest that wheat is a low profit crop. Its net profit may easily turn into a negative figure under the low input scenario (small-scale, Eastern Georgia). It also exhibits quite a low return to total costs, indicating that wheat growing should not be an attractive investment option. However, wheat is still grown by many small-scale farmers in Eastern and Central Georgia to meet their family needs for bread and livestock feed. Besides, wheat maintains its attractiveness to poor farmers as it requires the least cash investment during the season and thus it turns to be an affordable crop for them (along with sunflower in Eastern Georgia ). And last not least, wheat is grown in the rainfed area where other crops would have even less profitability. Wheat profitability was found to be more sensitive to the changes of yield and price than those of other crops. A 24% decrease of yield can drive the net profits of even high-input level small farm in the Central Georgia to zero. Wheat positively responds to improving the crop management level by increased yields and profitability. Moving from the low to medium input level in the small-scale sector of the Eastern Georgia results in increasing yield by 50% and net profits by 118%. The data suggest that sunflower is a very low profit crop. Its net profits amounts to USD 70 per ha maximum under the high input level, while there is a high probability of losing USD 16 per ha under the low input scenario. Soybean yields in Georgia are relatively low and consist about 50% of that in the developed countries. Soybeans have the lowest profit and returns in the Western Georgia. The positive side is the low cash requirement, which is an important factor for poor farmers. Major financial indicators for grain crops are presented in the table below.

English

0409|AGRIS 0401|AL-Wheat Program|AL-Maize Program

Juan Carlos Mendieta

CIMMYT Publications Collection

There are no comments for this item.

Log in to your account to post a comment.
baner

International Maize and Wheat Improvement Center (CIMMYT) © Copyright 2015. Carretera México-Veracruz. Km. 45, El Batán, Texcoco, México, C.P. 56237.
If you have any question, please contact us at CIMMYT-Knowledge-Center@cgiar.org

Centro Internacional de Mejoramiento de Maíz y Trigo (CIMMYT) © Copyright 2015. Carretera México-Veracruz. Km. 45, El Batán, Texcoco, México, C.P. 56237.
Si tiene cualquier pregunta, contáctenos a CIMMYT-Knowledge-Center@cgiar.org