Ukraine Closes Marketing Year Doubling Grain Export

Kyiv, June 27, 2012. Ukraine will have exported some 21-22 million tons of grain by June 30^th, reckons the Head of transnational trading company NMG Ukraine Mykola Horbachev. The expert listed the company’s estimate numbers regarding wheat export in 2011-2012 marketing year – 5 million tons, barley – 2.3 million, corn – 13 million tons.

Additionally, he said the amount of soy exported in 2011-2012 marketing year would reach 1.1 million tons, while the rapeseed export would equal 1.2 million tons. The total amount of grain exported in 2011-2012 marketing year doubled compared to the previous year and equals 22.6 million tons. Corn export demonstrated the fastest growth rate – it increased more than threefold.

The increased export is explained by unprecedented harvest. In 2011, Ukraine cropped the record amount of grain in twenty years (since declaring its independence). The rich harvest as well as the removal of export taxes and quotas contributed to export boost. Previously, Ukraine introduced export quotas for grain in order to regulate its inner market. Grain quotas were imposed at the end of 2010 and lasted till mid-2011.

“We [Ukrainian traders] did not give in to panic because of the record harvest and did not rush to get rid of the grain surplus,” said AAA consulting company director Serhiy Nalyvka. “Now we can sell harvest stored in elevators at a higher price,” he added.

As for the upcoming year, Mykola Horbachev expects the corn export from Ukraine in 2012-2013 marketing year to grow even further. “Export potential of this crop will reach 15 million tons,” he is quoted by Epravda.com.ua.

In 2011, Ukraine joined world’s top three grain exporters. A year prior – in 2010 – Ukraine landed fourth on the list of leading grain exporters, following the USA, the EU, and Canada. Moreover, Ukraine currently ranks number one in global barley exports. Additionally, Ukraine became the third largest corn supplier in the world in 2011, surpassing Brazil and being the second runner-up to the USA and Argentina.

Top grain customers of Ukraine are Armenia, Egypt, Israel, Japan, Jordan, Korea, Liberia, Portugal, Spain, and many others. In April of 2012, Ukraine and Jordan agreed that Ukraine would construct elevator facilities in Jordan. They are set to increase grain supply from Ukraine to Jordan, as well as to several neighboring states.