December 3, 2010

Russia to import grains from Ukraine, Kazakhstan

The Russian Federation is able to import grains from Ukraine and Kazakhstan, announced Pavel Skurihin, the President of the National Union of Grain Producers.

According to him, the current year grain production volumes will total 60 million tonnes. According to various estimations, the last season carry-over stocks varied from 21 to 26 million tonnes. And the stocks are very important resource for the country to date.

That is why, taking into account the domestic consumption level of grain of 77-78 million tonnes, Skurihin can see that the country will enter the following agricultural year (from July 1, 2011 to June 30, 2012) with the minimal or absolutely zero carry-over stocks.

And according to the standards, the country should have grains stock for at least two months, not less than 10-12 million tonnes. That is why, the certain grain volumes will have to be imported, stated the expert, and noted that the Russian Federation has the deficit of feed crops volumes - barley and corn.

Thus, according to him, it will be necessary to import not less than five million tonnes of grains. It is possible to import barley from Kazakhstan, and corn from Ukraine.

Kazakhstan, the same like Russia, suffered from the summer droughts, but Kazakh grain balance is the surplus. Barley prices are rather high there. But Russia will fave the economy on the logistics, while purchasing barley in Kazakhstan, but not in far abroad countries, underlined Skurihin.

While answering the question about reasonability of feed grain selling from the Intervention Fund of the Russian Federation, the President of the National Union noted that now it is better to purchase grains of new crop abroad, in particular in Kazakhstan and Ukraine.

In the spring, the world prices can face the increase. It is necessary to start to use own stocks, when other grain sources on the domestic and the nearest abroad markets will start to run low, stated Skurihin.