October 26, 2007

Ukraine clamps down on grain export

Ukraine, which has already set grain export quotas for November-March, would maintain exports limits for the period from April to June 2008, Farm Minister Yuri Melnyk said Thursday (October 26, 2007).

The country's port allows 25 million tonnes to be exported per season. However grain volumes are limited and export demands are strong, thus limits would have to be imposed, he said.

Furthermore, the 2007 grain crop is likely to fall to 29.2 million tonnes from 34.25 million in 2006 due to a severe drought in leading grain production areas, according to figures from the agriculture ministry.

The drop in output prompted the government to introduce a prohibitive grain export quota for the period from July 1 to November 1 this year.

Last month, the government imposed another grain export quota of 1.203 million tonnes for the period from Nov. 1 2007 to March 31 2008. That quota includes 600,000 tonnes of corn and 400,000 tonnes of barley and 200,000 tonnes of feed wheat.

Consequently, grain exports fell to 236,125 tonnes in July-September 2007, more than 90 percent below last year's levels.

Ukraine's grain export for 2007/08 is expected at 3.505 million tonnes, a third of the levels seen in 2006/07, according to UkrAgroConsult.