April 26, 2012

Ukraine's grain export nearly doubles

Since the beginning of the current marketing year (starting July 2011), Ukraine exported 17.3 million tonnes of grain, 88.7% larger than the respective export volume reached over the same period in the previous marketing year (2010-2011), reports Interfax.

Corn export demonstrated the fastest growth rate - it increased more than threefold. Grain supply in the country constituted 63 million tonnes in the current marketing year, the representative of the Ukrainian agrarian ministry Leonid Sukhomlyn informed at a press conference. Thus, there is no need to restrict grain export.

Previously, Ukraine introduced export quotas for grain in order to regulate its inner market. Grain quotas were imposed at the end of 2010 and lasted till mid-2011.

In January of 2012 it was reported that the Ministry of Agricultural Policy and Food of Ukraine expected grain exports in 2011-12 marketing year to reach 26 million tonnes. Wheat export was estimated at 7.8 million tonnes. As of now, wheat export amounted to 4.3 million tonnes.

In January-February of 2012 alone Ukraine exported 0.75 million tonnes of wheat, earning nearly US$180 million, according to ukrstat.gov.ua. Corn export during this period reached nearly three million tonnes, worth over US$700 million. Top grain customers of Ukraine are Armenia, Egypt, Israel, Japan, Jordan, Korea, Liberia, Portugal, Spain, and many others.

In April of 2012 Ukraine and Jordan agreed to expand agricultural cooperation. The two countries signed an agreement that stipulates the construction of elevator facilities in Jordan. They are set to increase grain supply to Jordan as well as several of the neighbouring states.

Notably, in 2011 Ukraine cropped the record amount of grain in 20 years (since declaring its independence). The unprecedented harvest as well as the removal of export taxes and quotas contributed to export boost that year.

As a result, Ukraine joined world's top three grain exporters in 2011. In 2010 Ukraine landed fourth on the list of leading grain exporters, following the USA, the EU, and Canada.

Moreover, Ukraine currently ranks number one in barley exports globally. Additionally, in 2011 Ukraine became the third largest corn supplier in the world, surpassing Brazil and being the second runner-up to the USA and Argentina.