The Ministry of Economy of Ukraine in the 2020/2021 marketing year (MY) forecasts a decline in grain exports by 20.5% compared to the previous MY, to 45.4 million tonnes.
According to the forecast balance released by the ministry, in particular, wheat exports will decline by 14.6%, to 17.5 million tonnes, corn by 22.4%, to 23.5 million tonnes and barley by 23.8%, to 3.82 million tonnes.
According to the ministry, the total production of grains and legumes in this MY is expected at 65.5 million tonnes.
In 2020, Ukraine exported fruit and berry products worth $238 million, which is 8% less than a year earlier, and is associated with quarantine restrictions and complication of customs procedures at the borders, the Ukrainian Agricultural Export Association (UAEA) reported on Friday.
According to the association, 92% of total exports were frozen fruits and berries ($111 million), walnuts in shell and without shell ($ 98 million), as well as apples and pears ($10 million).
According to the association, in kind, the export of walnuts decreased 41.2%, to 39,000 tonnes, and apples and pears – 64.3%, to 19,000 tonnes, at the same time, the export of frozen fruits was the maximum for the period of independence of Ukraine reaching 55,000 tonnes.
The UAEA reported that sales of Ukrainian fruits, berries and nuts to the EU countries in 2020 provided 77% of the total revenue from these products. Most of these products were bought by Poland ($57.7 million), France ($19.7 million), Germany ($17.2 million), the Netherlands ($11.6 million), Italy ($11.5 million), Austria ($11.2 million), the Czech Republic ($9.6 million) and Greece ($9.5 million). Turkey ($10.5 million) and Belarus ($9.2 million) are other major trading partners.
The association said that the average price of Ukrainian apples in 2020 grew by 1.5 times, to $500 per tonne, frozen fruits and berries – by 13.6%, to $2,023 per tonne, and shelled walnuts – by 5.1%, to $3,000 per tonne.
Structure of export of services for 9 months of 2020 (graphically).
The Ministry of Economy and grain market participants have agreed on a maximum corn export volume for the 2020/2021 marketing year (MY) in the amount of 24 million tonnes and will amend the annex to the memorandum of understanding between the grain market participants, the ministry said in a statement following a meeting held on January 25.
“Now, according to the regions, the projected corn production is 30.3 million tonnes, which is one of the best corn yields in all years. The Ministry of Economy believes that there are no problems with exporting corn to foreign markets or a probable shortage of this crop in the domestic market,” Economy Minister Ihor Petrashko said.
The report indicates that, if necessary, the parties agreed to revise the approved maximum amount of corn allowed for export, after the publication of official statistics on crop production in 2020.
As reported, the associations of poultry and livestock breeders initiated the restriction of corn exports at the level of 22 million tonnes in 2020/2021 MY in the “grain” memorandum. They argue their proposal to limit exports by the need to guarantee the domestic market 7.5 million tonnes of corn for production of animal feed.
The Ukrainian Grain Association considers the volume of corn exports at the level of 24 million tonnes acceptable for the market participants and corresponding to their forecasts of the harvest of this crop, acting executive director of the association Serhiy Ivaschenko told Interfax-Ukraine. Earlier, the association opposed the restriction of corn exports at the level of 22 million tonnes, since, in its opinion, the real goal of the initiators of the restrictions was to create an artificial surplus in the domestic grain market to reduce prices.
One of the members of the American Chamber of Commerce told Interfax-Ukraine that the association discussed the possibility of limiting corn exports before making a final decision and agreed that there was no urgent need for it, but if such a limitation is introduced, then it should be set at the level of 24 million tonnes, but not 22 million tonnes as suggested by its initiators.
Ukraine exported in the current 2020/2021 marketing year (MY) and as of January 15 some 27.2 million tonnes of grain and legumes, while in the previous MY and as of January 20, some 33.9 million tonnes were supplied to foreign markets, the Economy Ministry said at its website with a link to the data of the State Customs Service.
“In the current 2020/2021 MY, some 12.6 million tonnes of wheat have already been exported. It fully meets the planned dynamics that we have agreed on with the specialized associations by signing the corresponding annex to the Memorandum of Understanding on the Grain Market,” Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko said.
The Economy Ministry said that out of 27.2 million tonnes of grains and legumes, in addition to wheat, 3.9 million tonnes of barley, 1,700 tonnes of rye and 10.3 million tonnes of corn were also supplied to foreign markets. In addition, 81,500 tonnes of flour in terms of grain were exported.
As reported, in the 2019/2020 marketing year and as of January 20, 2020, Ukraine exported 15.5 million tonnes of wheat, 3.8 million tonnes of barley and 14.2 million tonnes of corn, as well as 207,000 tonnes of flour in terms of grain.
Over 14,000 Ukrainian companies annually export their products to the European Union, said Minister of Economy Ihor Petrashko.
“Over 14,000 companies annually export their products to the EU. And as of mid-January, 362 companies producing animal products have the right to export their products to the EU, which is subject to the most stringent requirements from the EU,” the press service of the ministry quoted Petrashko as saying in the release on Friday.
Reforms in technical regulation, public procurement, sanitary and phytosanitary standards, as well as improving the product safety control system, customs, intellectual property protection system will allow to remove barriers to trade and provide more free access to the EU internal market for Ukrainian companies, the minister said.
“Today we see that we are ready to go further in our European aspirations,” Petrashko added.
