July 17, 2012

Ukrainian Association predicts grain producers' losses in 2012-13 season

Losses of UAH39 billion (US$4.8 billion) in July 2012-June 2013 marketing year will be experienced by Ukrainian grain producers as predicted by the Association Ukrainian Agribusiness Club (UCAB), reads a statement made by the UCAB.

"In all, grain producers' losses in the marketing year of 2012-13 may reach UAH39 billion (US$4.8 billion), factoring in UAH29 billion (US$3.6 billion) for expense of difference in prices, UAH5.5 billion (US$679 million) losses of harvest over adverse weather in May-June and UAH4.5 billion (US$556 million) of growing costs of land lease because of increased normative pecuniary appraisal of land by 75.6%," the statement said.

UCAB experts have calculated, world prices for wheat are higher than the domestic ones by US$78 per tonne, for barley by US$33 per tonne and for corn by US$96 per tonne.

The main reasons of the grain producers' losses are: failure to reimburse value added tax when exporting grain, high logistic expenditure, vast carryovers of grain crops and also difficulties with interregional transportation of grain.

As Ukrainian News earlier reported, the UCAB measures grain producers' losses due to the May-June swelter at UAH5.6 billion (US$692 million).