May 20, 2009

Ukraine will raise its grain export projections to up to 26 million tonnes for the 08-09 season from a previous estimate of 25 million tonnes, First Deputy Agriculture Minister Yuri Luzan said on Tuesday (May 19).

He said Ukraine had already exported 21.8 million tonnes between July 2008 and March this year while another deputy minister, Valantyna Zavalevsk, said exporters had shipped abroad 23 million tonnes of grain as of mid-May.

Ukraine harvested a record 53.3 million tonnes of grain in 2008 against 29.3 million in 2007. In 2007-08 grain exports reached 4 million tonnes due to strict export restrictions.

Agriculture Minister Yuri Melnyk last week said the ministry was likely to change its initial 2009 grain crop forecast of 48 million tonnes, but gave no more details.

Though he declined to give new forecast, Luzan said the ministry was going to reduce its estimates for wheat and barley.

Frosts in April, drought in March and April have affected crops and the future harvest but recent rains have improved crops."

Analysts have put the 2009 grain crop forecast at about 40 million tonnes, including 19 million of wheat, 9.8 million of barley and 7.2 million of corn, but Luzan said these forecasts were understated.