September 28, 2010

 

Ukrainian grain operator to export 4-5 million tonnes of grain annually

The state agrarian operator in Ukraine set up on the basis of state-run joint stock company, Khlib Ukrayiny, will be able to supply to foreign markets 4-5 million tonnes of grain annually.

 

This will make up one third of total grain exports in the country, said the Agrarian Policy Ministry.

 

According to the Ukrainian Grain Association, the grain corporation included every third enterprise of the state-run joint stock company Khlib Ukrayiny (in total 36).

 

In particular, the port elevators have passed the selection procedure, since Mykolayiv and Odesa elevators are the most attractive assets of Khlib Ukrayiny.

 

Thus, Odesa grain elevator is one of the largest grain transshipment complexes in the country that ensures processing of different grain and oil-bearing cultures. In addition, the enterprise is one the limited number of enterprises whose technical characteristics allow receiving supersize ships Panamax. According to experts, the designated assets ensure the export activities of the state-run joint stock company.

 

The new state agent will also have a diversified network of regional grain elevators. Total capacity of grain storage at those enterprises makes up 3.2 million tonnes, 70% of total Khlib Ukrayiny elevator capacities.

 

According to the Ukrainian Agrarian Confederation director general Serhiy Stoyanov, total export of grain from Ukraine in the first half of September is less than 600,000 tonnes.

 

In turn, the Agrarian Policy Ministry lowered down its forecast of grain cultures in 2010-11 marketing year by 3.3 million tonnes to 12.7 million tonnes.

 

According to Stoyanov, agrarians will try to compensate for losses from suspension of purchases inside the country at the expense of the grain storage under own roof.

 

Presently, export activities of grain traders have been actually frozen. According to Ukrainian Agrarian Confederation (UAC), about 20 ships with grain continue to stay at ports.

 

Inspection specialists fear that if grain remains for winter directly with agrarian producers at unequipped and unfit storages, its considerable part will rot or will substantially lose in quality.

 

Under such conditions, according to them, in spring Ukraine can face a problem of its utilisation instead of the grain export problem. Rot grain has greater fungus concentration; therefore it cannot be used even as a fodder for cattle.

 

At the same time, UAC experts maintain that it will be possible to avoid a mass loss of grain, even if the farmers leave grain in their storages. "The agrarians have constructed a sufficient number of own storages and will do without expenses for elevators' services," Stoyanov says.

 

Director General of the company Ukrzernoprom Agro, Yevhen Leng, added that traditional ways of storage have been replaced by the alternative ones, instead of a headache with elevators some companies are planning to use special plastic bags as grain storages. These so called mobile storages of 200 tonnes remain in the open air.

 

This experience the farmers borrowed from their Argentina and Canada counterparts: expenses for grain storage become considerably optimised and make up about US$7 per tonne over a season.