Steppe Group sees 10% drop in yield for some crops due to drought

KRASNODAR. Aug 26 (Interfax) - Steppe Group, the agriculture division of Russian investment group Sistema PJSFC , is seeing a 10% drop in yields for some crops due to protracted drought and low temperatures in the spring, Steppe CEO Andrei Neduzhko told Interfax.

"Steppe Group's experts are now monitoring and studying the ratio of planned to actual yield [for grains]. According to preliminary data, it is expected that the yield will decrease by 10% compared to last year. The decrease in yield and impact on plant health are the result of weather conditions - drought and low spring temperatures," Neduzhko said.

However, 70% of the grain harvested so far this year is grade 3 and 4.

The group has finished harvesting all the main niche crops, including peas, chickpeas, flax and mustard, among others. "The decrease in yield amounts to 10% to 20% for different crops," Neduzhko said.

Steppe is now starting to harvest oil and confection sunflower seeds. "The area devoted for the harvest of these crops remained almost unchanged this year compared to the previous period. The group's experts do not expect a decrease in the confection sunflower seed yield and forecast a decrease in the oil sunflower seed yield of up to 10% compared to last year," Neduzhko said.

The group's farms began harvesting in mid-June, which is earlier than usual for southern Russia. Steppe said at the time that weather conditions in the spring will reduce yields. The company resowed plants that perished, which will help to partially offset the impact of the unusual weather.