December 14, 2007


Ukraine's grain industry wants to export more



The Ukrainian Grain Association (UGA), which represents the country's grain trading companies, thinks export quotas for grain should be at least doubled to 2.4 million tonnes, while the quota period should be extended a further three months from from March 31 to July 1, 2008.


Grain exports should be allowed as of December 15, UGA president Vladimir Klimenko told Interfax.


The UGA is advocating the introduction of a resolution that would allow 1.2 million tonnes of grain to be exported between December 31 and April 1 next year, he said.


Ukraine's export quotas have created excess grains such as corn and barley which are deteriorating in quality as the country does not have enough capacity for proper storage, he said.


Increased quotas and an earlier window to export would enable farmers to earn the financial resources to carry out spring field work, he said.


In May, the grain elevators would have to be freed for the new harvest.


Ukraine can export at least 4 million tonnes of grain this year, according to all balance figures, Klimenko said. Traders have applied to export 3.6 million tonnes.


Without exports, carry-over grain stocks by July will total 10 million tonnes worth about US$2.5 billion, he said.


The government imposed a grain export quota of 12,000 tonnes starting from July this year.


In November, the Cabinet decided to keep this quota in effect until the end of the year, and allow the export of 1.2 million tonnes of grain between January 1 and March 31, 2008.


The Agricultural Policy Ministry recently proposed that the government bring forward the allowed date of exports to December 15.


Ukraine's harvest this year fell 18 percent from 34.3 million tonnes in 2006 to 29 million tonnes this year.

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