June 1, 2012

 

 

Despite a drought during sowing and severe frosts in January-February, Ukraine is likely to harvest up to 50 million tonnes grain this year, its third largest harvest in the past 20 years, the Agriculture Minister said on Wednesday (May 30).

 

Mykola Prysyazhnyuk told Reuters in an interview that a sharp increase in the area sown for corn would compensate the former Soviet republic for a fall in output of its traditional commodities wheat and barley, adding export curbs were not on the cards after a four-month embargo at the start of the season.

 

"Our principal position is not interfering in the market," said Prysyazhnyuk.

 

He said drought and frosts reduced Ukraine's wheat harvest to 12-12.5 million tonnes this year from 22.3 million in 2011.

 

"Taking into account recent rains in eastern and southern Ukraine we can get 47-50 million tonnes of grain this year," Prysyazhnyuk said.

 

"An increase in the area under corn will give us more volume while the output of wheat will fall".

 

Ukraine sowed about seven million hectares for winter wheat but poor weather reduced the area by 1.45 million hectares, he said, adding that favourable weather may increase the 2012 wheat harvest to about 14 million tonnes.

 

Prysyazhnyuk said that frosts and drought had also cut Ukrainian barley production to about 8.5-9.0 million tonnes from 9.1 million a year earlier. He said that farms had boosted the area sown for corn by 1.2 million hectares this year to 4.6 million hectares and the new record high area might give Ukraine a harvest of 26-27 million tonnes of corn.

 

Ukraine, which produced about five million tonnes of corn five years ago, harvested 22.7 million tonnes of the commodity in 2011.

 

"Corn is much more profitable because of a higher harvest and foreign demands. We have discussed the issue with scientists and Ukraine could sow much larger area for corn", Prysyazhnyuk said.

 

"The area under wheat is likely to be smaller", he noted.

 

Ukraine is likely to export about 21 million tonnes of grain this season, but that could have been much higher without the export duties which were imposed in the first four months of the season.

 

Prysyazhnyuk said the government would not make such a mistake in the new 2012-13 season. He said the duties would leave about 11 million tonnes of grain in stocks at the beginning of the 2012-13 season, including 7.5 million tonnes of wheat, 2.2 million tonnes of corn and 1.4 million tonnes of barley. Ukraine usually has 3-5 million tonnes of grain in stock.

 

"We expect that our ending stocks at 11 million tonnes. It gives no reason to regulate exports but from the other side it may reduce local purchase prices," he said.

 

He said the volume could also include about five million tonnes of wheat and 2.5-3.0 million tonnes of barley.