THE UKRAINE (2 April)

The outlook is mixed. Better availability of fertilizers could offset the effect of a sharp fall in the area likely to be harvested. Even with normal growing conditions until the harvest, the winter grain area for harvest in 1998 is likely to fall 10 percent to about 6.5 million hectares. The spring grain planting target is 7.2 million hectares. A substantial backlog of autumn ploughing coupled with farm liquidity problems and shortages of machinery, fuel and fertilizer could result in poorer land preparation techniques and lower yields than last year. Early indications are that accumulated debts for inputs provided by the private trade on credit against delivery of the crop at harvest in the past two years has led to a tightening of the terms of such deals and reduced supplies. The 1998 grain harvest could be less than the 35-40 million tonnes projected officially. However, weather conditions will be the deciding factor. Early indications are that the area sown to sunflowers will increase and that the sugarbeet area will remain well below target.