May 2, 2011

Ukraine prepares to return to world grain market

Ukraine has plans for the complete return to the global grain market, and is ready to make higher grain export volumes compared to the last season.

The first step was the decision of the Cabinet of Ministers at a meeting on April 27 to cancel quotas for corn exports. In May, the cabinet may complete cancellation of export quotas for other grains.

The Ministry of Agrarian Policy and Food of Ukraine forecasts grain export volumes in the new season to be 19-20 million tonnes, including wheat at 8-9 million tonnes, corn at about four million tonnes, barley at 5-6 million tonnes. The final figures may be revised in mid-May.

According to preliminary forecasts of analysts of APK-Inform Agency, grain harvest in Ukraine in 2011-12 will total 43.4-48.7 million tonnes. At the same time, wheat production is expected within rates of 19.3-23 million tonnes, barley at 9.2-9.9 million tonnes. Analysts estimate corn production volumes at the level of 12.7-13.4 million tonnes, which will be the record compared to the 12 previous seasons.

According to Nikolay Prysiazhnyuk, Minister of Agrarian Policy and Food, the government plans by 2017 to get the general grain harvest to the level of 80 million tonnes.