January 11, 2008

Drought forces Ukraine's 2007 grain production down 14.5 percent 

Ukraine's 2007 grain harvest fell by 14.5 percent to 29.29 million tonnes from 34.25 million in 2006 after a severe drought, the state statistics committee said on Thursday (January 11, 2008).

Wheat accounted for a little under half the overall crop while corn accounted for a quarter. 

All major grain crops saw a reduction when compared to the previous year, except corn, which rose 15 percent from 6.43 million tonnes in 2006 to 7.42 million tonnes last year.

Barley production was halved from 11.34 million tonnes in 2006 to 5.98 million tonnes in 2007. 

Sunflower seed harvest and the sugar beet crop fell 21.6 percent and 24 percent respectively due to a reduction in the sown area and a lower yield.

Droughts in Ukraine's main grain production areas prompted the government to impose a grain export quota for the second half of 2007. 

In September, the government imposed a grain export quota of 1.2 million tonnes for the period from Nov. 1 2007 to March 31 2008.

The quota has been widely criticised as traders maintained that higher grain inventories should allow Ukraine to raise the grain quota to 5 million tonnes.

The Farm Ministry said this week Ukraine might start grain shipments under the quota in late January.