|
FARMING IN Poland and the Ukraine is “less different than you might imagine,” according to SAC principal crop consultant Keith Dawson.
Speaking to The Courier between visits to Eastern Europe, Dr Dawson said, “Things are better than you might expect, especially in Poland. Gdansk is now one of the most cosmopolitan cities in Europe.
“Throughout the country there has been a ‘leapfrog effect’ in technology. For example, there has been a shortage of telephone land lines but now everyone has a mobile.
“It is the same in agriculture, but there is a dearth of capital both there and in Ukraine.
“We are finding that there is a place for Scottish capital and expertise.”
Scottish, English and Irish entrepreneurs are already active and Dr Dawson revealed that he is now agronomy adviser on a 10,000-hectare oilseed rape-growing venture in Ukraine.
The crop is to be grown for bio-fuel production and capital has been raised in the UK.
Dr Dawson and his SAC team work from Edinburgh and specialise in providing a consultancy service to British farmers venturing east rather than advising Polish or Ukrainian farmers.
“Scotland, in particular, is ahead of most of Europe in farming skills, advisory work and quality assurance,” he said.
“We are too slow to sing our own praises.
“We have SCRI here on our doorstep doing good work
“In the rest of the EU, east and west, there is a lot of under-funding of research.”
“The economics of production in eastern Europe are good, with both land and labour cheaper than here.
“In Poland, however, there is an effect from people leaving the land. Many have gone, not to Polish cities but to elsewhere in the EU to work.
“It has driven up local labour costs and there is a need for worker retention.
“Soils in Poland are variable and the yield potential will never be as high as in Angus, for example.
“Summers are hot and springs are long and cold
“Wheat yields have typically been two tonnes per hectare but we are now pushing 7.5 tonnes, albeit with higher costs per hectare.
“Polish soils are acidic and it has often been a back-to-basics exercise with lime and couch grass control making the biggest difference.”
The same application of basic soil management has been important in Ukraine, although the soils are different.
They are mostly deep black soils with good inherent fertility and a pH of 6.2 to 6.4, but couch grass has been a huge problem.
Whereas in Poland many of the farms and estates were large units, formerly state run, in Ukraine the land had been broken up and handed back to the former owners or their descendants.
This had resulted in landholdings as small as one hectare which in most cases had been abandoned, but still formed part of huge fields.
Much of this land had reverted to couch-infested scrub and needed what Dr Dawson referred to as “remediation.”
This consisted of repeat applications of glyphosate herbicide and some hefty machinery.
“Minimum tillage systems are widespread but for remediation work, the plough is still a good friend,” he said.
Once the land is back in heart the potential is good.
It is not possible to buy land in Ukraine but it is available on five to 15-year leases at an annual rental of $40 per hectare.
Potatoes, cereals and oilseeds are all suitable crops, with most of the produce heading east rather than west.
The potato price in Ukraine is 30% higher than it is in Scotland and, being a traditional bag trade, outgrade levels are significantly lower.
Of course there are risks. There is political instability in Ukraine but Dr Dawson does not consider it a barrier to farming progress. “Food and fuel security are much more to the front of minds than they are here,” he noted.
Ukraine relies on oil from further east and six million Ukrainians died of famine during the 1930s when Stalin deliberately destroyed peasant farming. These memories and those of the chaos of the second world war are still fresh.
It is bitingly cold in winter with temperatures down to minus25C.
It is not a place to be without food and fuel.
There are climatic problems for farming but these can be mitigated by good management.
The risks of not being able to get money out are minimal.
There is a moratorium on buying land but leases are available on units of 1000 to 3000 hectares.
“Interest rates are very high at around 19%, which is why western capital is so welcome,” said Dr Dawson.
“Poland is a lower risk. It is a more developed market with lower returns.
“Interest rates were very high but they are now 4% to 5%.
“Land can be bought in Poland with a local partner for $2000 to $4000 per hectare.
“There are opportunities in both these countries.
“Don’t believe the myths, go out there and see for yourself. It is not without problems but SAC are well equipped to advise.”
Certainly, travelling to Eastern Europe is not difficult, with cheap direct flights from Edinburgh and Glasgow.
“I can leave Edinburgh and be in a field in Poland more quickly than I could travel to central London,” said Dr Dawson.
|