December 22, 2010

Ukraine losses one-million-tonne corn due to grain export ban

One million tonnes of corn has remained in the Ukrainian fields out of the 12 million tonnes of corn yield, according to the President of the Ukrainian Agrarian Confederation Leonid Kozachenko.

"Over the past three months (since the introduction of grain export quotas), the amount of spoiled corn has reached one million tonnes. It is spoiled, and we are recycling it, because there is no possibility to export it," he said.

Because of the small volumes of quotas, as well as their slow distribution, the shortage of grain storage facilities formed on the market.

Corn, the harvesting of which starts in the last place, found itself in the most difficult situation since grain elevators were loaded before the corn harvesting campaign. The situation was complicated by the fact that this year's corn harvest is the highest over the whole period of Ukraine's independence – 12 million tonnes.

Two weeks ago, the Ukrainian government extended restrictions on grain exports for a few more months – until March 2011, by increasing the quota by 1.5 million tonnes (now it totals 4.2 million tonnes). Additionally, it was decided to allow the export of 500,000 tonnes of wheat and one million tonnes of corn.

According to the calculations of the Ukrainian Grain Association, the resulting loss of farmers will total about US$100 per tonne, or about US$350 per hectare of cultivated land.