July 4, 2008

Ukraine expects four-fold increase in grain exports after plunge in 2007-08

Ukraine is expecting a four-fold increase in grain export after a steep plunge in 2007-08.

Ukraine's grain exports plunged to 3.615 million tonnes in the 2007/08 season (July-June) from 9.832 million in 2006/07, UkrAgroConsult said Thursday (July 3, 2008).

The steep drop was due to a restriction on grain export for almost the entire 2007/08 season after a drop in the 2007 grain crop.

Exports were only allowed in May as the agriculture ministry expects a jump in production from 29.7 million tonnes last year to 40 million tonnes in 2008, meaning exports could jump as high as 14 million tonnes

The consultancy was even more optimistic, expecting production of 43 million tonnes and exports of 16.16 million tonnes.

The consultancy also increased its wheat crop outlook to 21.83 million tonnes from 20 million, while the barley harvest forecast rose to 10.28 million tonnes from 9.86 million.

UkrAgroConsult agriculture consultancy said the volume exported in 2007-08 included 1.037 million tonnes of barley, 895,100 of wheat and 1.604 million tonnes of corn. Export figures in 2006/07 was five times higher than 2007-08 for barley, three times for wheat and about 50 percent higher for corn.