January 20, 2012

Ukraine's grain exports seen sufficient

Ukraine's Ministry of Agricultural Policy and Food does not see grain export limitations in the absence of a sharp rise in bread wheat exports, said Agriculture Minister Mykola Prysiazhniuk.

"If there is no sharp rise in the exports of bread wheat, no threats or the need for state regulation of the export will arise," he said.

According to the minister, in the current season Ukraine has harvested 13 million tonnes of bread wheat, while its domestic consumption is estimated at five million tonnes. "Given EURO 2012 and the decrease in cultivation of wheat (in 2012 - ed.), if it is possible, today we can safely export to five million tonnes of wheat out of 13 million tonnes," Prysiazhniuk said.

He noted that Ukraine has supplied to foreign markets 10.4 million tonnes of grain (5.8 million tonnes of corn and 2.7 million tonnes of wheat, including 1.4 million tonnes of bread wheat).

Relative to projected exports, Prysiazhniuk said the ministry hopes that this season Ukraine will export the planned 26 million tonnes of grain. He noted that, according to the ministry, in the second half of the current marketing year, Ukraine is likely to be able to export 12-14 million tonnes.

As reported, the USDA in its December report reduced the forecast of Ukrainian grain export to 23.4 million tonnes, while reducing the forecast for wheat exports from Ukraine from eight to seven million tonnes and leaving unchanged the export of corn (12 million tonnes) and barley (4.4 million tonnes).