August 5, 2013

 

Ukraine to ship 120,000 tonnes corn to China in Oct-Nov

 

 

In October-November 2013, Ukrainian state-run grain firm GPZKU would supply the first of its corn to the Chinese market under a US$1.5 billion deal signed last year.

 

"We have signed contracts to supply the first 120,000 tonnes of corn to China," Robert Brovdi, GPZKU deputy chief, said, without giving any other details.

 

Under a deal agreed last year with China, GPZKU obtained a US$1.5 billion loan to finance improvements to the former Soviet republic's agriculture. GPZKU is exporting its grain via Chinese operator China National Machinery Complete Industry Engineering Corporation. However, until now, the Chinese firm has resold Ukrainian grain to other countries.

 

GPZKU said earlier this year that it planned to buy up to four million tonnes of produce from the 2013 harvest using Chinese funds and expected exports of two million tonnes by the end of the year.

 

Ukraine, the world's fourth-largest corn exporter in 2012-13, is likely to harvest a record corn crop of 26 million tonnes this year and plans to export about 16 million tonnes this season.

 

Ukrainian corn has already won several international tenders, according to national grain lobby UAC. Ukraine, which consumes about 10 million tonnes per season, harvested 20.9 million tonnes of the commodity in 2012.

 

Agriculture Minister Mykola Prysyazhnyuk said this week that Kiev, which was looking for new markets for its bumper harvest, hoped to add China to the list of its export destinations soon.

 

He said that GPZKU had already sold 600,000 tonnes of wheat and barley since June to a Chinese state company for export to clients in the Middle East and other markets.

 

Ukraine has already met all the requirements to ship corn to China's domestic market and will also supply it with wheat once it receives authorisation from the Chinese side, the minister said.