Ukraine's grain production to take a downturn

Ukraine's grain production for the new season is expected to reduce by 3.2% to the level of 44.5 million tonnes.

The general sowing areas of grains in Ukraine for the harvest-2010 will stay almost at the level of the previous year and total 15.8 million ha.

At the same time, in the new season, general grain production is expected to reduce to 44.5 million tonnes, especially wheat - down 7.3%, to 19.4 million tonnes, barley - by 5%, to 11.3 million tonnes, forecasted Anastasia Ivasenko, the analyst of APK-Inform Agency.

According to the expert, the deficit of financial resources for agricultural technologies at the required level, and the influence of the weather factor became the main reasons of the further reduction of grain production.

At the same time, Ivasenko reminded that estimations of the Ministry of Agrarian Policy show more optimistic results at the level of 46-47 million tonnes. The expert also forecasts that the total supply of grains in Ukraine in the 2010/11 marketing year (MY) will form the volume of 48 million tonnes, down 5.2% compared to the current season index.

Thus, in 2010/11 MY, Ukraine will be able to supply nearly 17.8 million tonnes of grains on foreign markets, a decrease of 14% compared to the export forecast of the current season. Wheat and barley export volumes are expected to show tendencies of reduction; at the same time, the forecasts of corn production provide rather good prospects of corn exports in the following season, said Ivasenko.