October 22, 2010

Ukraine's grain export quotas to be hardly prolonged in 2011

Ukraine's grain export quotas will hardly be prolonged in 2011, with any possible following fall of grain's internal prices to be also short-lived, Dmytro Ushenko, BG Capital analyst has said.

"A number of large agricultural companies having sufficient capacities for storage, including Mriya, Sintal, Astarta and Agroton, can store grain with lower expenses and by this to preserve their profitability rate. Whereas other companies will, perhaps, face the reduction of profitability," the analyst noted.

On October 19, a resolution on introduction of quotas for grain export came into force. The quotas were allocated in the following amounts: two million tonnes of corn, 0.5 million tonnes of wheat, 200,000 tonnes of barley and by 1,000 tonnes of rye and buckwheat that can be exported till December 31, 2010.

Earlier, Prime Minister Mykola Azarov has stated that grain export quotas can be abolished following creation of the necessary stock by the Agrarian Fund and by the state reserves.