October 6, 2010

Ukraine's grain producers lose US$0.75 billion

Ukrainian grain producers lost a total of UAH6 billion (US$0.75 billion) due to grain export obstruction, announced President Leonid Kozachenko of Ukrainian Agrarian Confederation on October 1.

According to him, the government holds the low prices for grains on the domestic market by hand regime, denies grain exports, limits financial resources receiving in the applied volume.

According to President of Ukrainian Agrarian Confederation, wheat prices on the European market total EUR230-240 (US$318.25-$332.14) a tonne, during the last weeks wheat prices on the domestic market of Ukraine increased from UAH1400 (US$176.16) to UAH1700-1800 (US$213.9-$226.49) a tonne. It is the large losses, farmers losses, the government should not allow it, the farmers have no financial resources, and according to estimations of Ukrainian Agrarian Confederation the losses total nearly UAH6 billion (US$0.75 billion).

Besides, the farmers overdue repayment of debts to the banks totals nearly UAH4 billion (US$0.50 billion). The possible export ban will bring even larger losses for Ukrainian farmers.

Kozachenko noted that the autumn sowing campaign is over. "It is possible to sow in the southern regions only till October 15. It is too late to sow crops throughout the large-scale territory of the country. There is no base to tell that the country will get the high or optimal volumes of grain production next year," he added.