Grain Bags has done the math. See how much the farmers who stored wheat in silobags earned in 2021
About 35,000 Euros. That’s the profit obtained for storing 500 tons of wheat for 6 months in the silobag system. That’s a 32% increase in profit, compared to selling immediately after harvest, according to Grain Bags analysis on the agricultural market official data.
1. Wheat production and wheat price, rising in 2021
In 2021, our country had a total wheat production of 11.44 million tons, this being the largest harvest since Romania’s European Union membership. The average wheat production marked a 5,340 kg/ha record in 2021. Both the wheat production and wheat selling price were increasing, having a 260 euros/ton average, above the average of the last five years – 174 euros/ton, explained Cezar Gheorghe – grain trade expert analyst for the Romanian Farmers’ Club.
“At the beginning of July 2021 (07-17.07.2021), the CPT Constanța parity price was 175 euros/ton. After that, the price started to rise and in August 10, 2021 was 208 euros/ton, in December 2021, wheat reached a maximum price of 295-297 euros/ton in Constanța port and it remained so for only 48 hours, after which it began to decrease. In February 15, the price was 263-265 euros/ton, in Constanța port. If no major movement happens in the market, I mean externally, regarding the conflict between Russia and Ukraine, the price of wheat should go down or stagnate around 260 euros/ton”, Cezar Gheorghe specified for Grain Bags.
2. Predictions: How much you will earn in 2023, if you store wheat in silobags
Farmers who stored their wheat in silobags, in 2021, made a substantial profit from selling it early in 2022. They collected 32% more money than they would have received if they had sold at harvest time.
“If we are talking strictly about storage, silobag is the perfect solution because you have the chance to speculate on the perfect time to sell, to capitalize on the price peaks in the market”, Cezar Gheorghe added.
Those who plan to store wheat in this system in the fall of 2022 as well, will see a 53% increase in profit, according to Grain Bags estimates, based on market information and found below in an easy-to-read chart.
||Average harvest price/ton
||Average price/ton at 6 months
||Calculated revenue for 500 t, at harvest
||Calculated income for 500 t, 6 months after harvesting
||Calculated costs for storage (silobags + machinery rent)
||Extra profit (after depreciation expense)
In conclusion, by selling 500 tons of wheat after 6 months since harvesting, meant approximately 35,000 euros profit, for the farmers that stored in silobags. If this year they continue to store in silobags, the estimated earnings will reach 45,000 euros, for 500 tons stored.
3. Wheat is in the top 3 most stored grains in silobags
“Wheat was one of top 3 most stored grains in 2021, in the Grain Bags silobags. We are happy for the farmers that trusted this storage system, they made a great profit this year, from selling their harvest. In 2022, we will continue to encourage farmers to store in silobags because it involves low costs compared to other storage spaces and it is safe and efficient. Our objective for this year is to store 1 million tons of grain, in silobags”, says Narcis Ranghiuc, Grain Bags general manager.