Buying grains & cereals (wheat, barley, corn) from Ukraine

An Expert's View about Major Exports in Ukraine

Posted on: 19 May 2012

All about buying, exporting grains & cereals (wheat, barley, corn) from Ukraine

Due to high soil fertility Ukraine is one of the 5 biggest global grain exporters – in average 20-21 million tons are exported per year (barley - 1 place in the world by exports, corn - 3 place in the world by exports, wheat – 5 place in the world by exports). Feed corn is a key position in the structure of Ukrainian grain exports.

Volumes of grain exports from Ukraine:

grain exports (mln tons)/ marketing year 2008/09 2009/10 2010/11 2011/12 2012/13 (forecast)
wheat 12,5 8,1 4,1 4,5 7,1
barley 6,2 6,1 3,8 2,4 3,2
corn 5,8 5,0 5,0 12,0 13,8

According to customs statistics, Ukraine primarily exports grain to Egypt (30%), Iran (15%), Spain (20%), Syria (10%), Algeria (6%), Tunisia (6%), Portugal (5%), Israel (5%) and other countries.

Ukraine harvests primarily feed (coarse) grains (approx. 9 mln ha), oilseeds (approx. 8 mln ha) and wheat (approx. 5,5 mln ha). Annually Ukraine produces around 45-50 mln tons of grains depending on weather or other factors (as comparison: Kazakhstan approx. 15-20 mln tons, Russian Federation – approx. 80-100 mln tons). The USDA forecasts the yield of grain crops in Ukraine at 45.73 million tons in 2012. In particular, the wheat harvest is forecasted at 13 million tons and coarse grains - 32.725 million tons. The Ministry of Agriculture of Ukraine forecasts wheat harvest 15-16 million tons in 2012 and 45-50 million tons of grain in total.

Currently grain profitability in Ukraine is 60%. Ukraine does not apply export duty to grain commodities. However, according to Tax Code export VAT (20%) shall not be reimbursed in case of export of grain commodities.

Ukrainian port handling capacities almost 2 times exceed current grain export rates. Ukrainian storage capacities also slightly exceed current grain export. Therefore, Ukraine has strong position and may further develop its export.

Bearing in mind that up to 2070 the world population will double as well as shortage of arable lands will only increase, Ukrainian grains & cereals market has great potential for expansion.

You can study FREE OF CHARGE average Ukrainian export prices for milling and feed wheat, corn, barley, other grains & cereals here - http://kpl.net.ua/en/Current_Commodity_Prices_in_Ukraine.html

Copyright. Marketplace UkrRos LLCbuying, exporting, grains, cereals, wheat, barley, corn, Ukraine


Posted: 19 May 2012

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