The Ukrainian Agrarian Confederation and the working committee of China’s Association of Small and Medium-sized Enterprises signed a memorandum of cooperation for the development of bilateral cooperation in the agricultural sector, the Ukrainian Grain Association (UGA) reported on its website on Tuesday, which also joined the signing of this document.
“Today, in the current grain season, Ukraine has exported to China about 10 million tonnes of grain, potentially could increase the export rate by 2-3 times over time. The bulk of grain exports to China accounts for corn and barley. And it is necessary to sign the appropriate interstate phytosanitary protocols to open the Chinese market for Ukrainian wheat, sorghum, peas and other crops,” the press service said, citing President of the Ukrainian Grain Association Mykola Horbachev.
According to the association, the parties will jointly create a Chinese-Ukrainian Council for International Cooperation in Agriculture, in particular for the development of modern agricultural trade and industrial park projects.
Ukraine since the beginning of the 2020/2021 agricultural year (July-June) as of April 7, 2021 exported 36.07 million tonnes of cereals and legumes, which is 22.8% less than on the same date of the previous agri-year.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, 14.46 million tonnes of wheat, 16.90 million tonnes of corn, and 4.11 million tonnes of barley have been exported.
As of the indicated date, 97,400 tonnes of flour were also exported.
According to the Ministry of Agrarian Policy and Food, Ukraine exported 56.72 million tonnes of grain and leguminous crops in 2019/2020 agri-year.
Ukraine can multiply the production and export of grain, while their industrial processing can increase by no more than 2 million tonnes per year, President of the Ukrainian Grain Association (UGA) Mykola Horbachev said at an online conference on Tuesday.
“The cries about the need to process more inside the country are groundless. It is necessary to create a good raw material base that will show the whole world: if it is profitable to export, then investors will come and build processing plants themselves,” he said.
According to Horbachev, Ukraine could reduce its need for gasoline, which exports 4 million tonnes annually, by adding up to 20% of bioethanol produced from corn.
The president of UGA cited calculations according to which 0.38 tonnes of ethanol can be produced from 1 tonne of corn. Accordingly, to provide the required 800,000 tonnes of ethanol in the form of an additive to gasoline, Ukraine will process about 2 million tonnes of corn.
In addition, Horbachev said that over 20 years Ukraine has increased its corn production 10 times, while this figure is not the limit, since most agricultural producers grow 6-7 tonnes per hectare. He said that there are farms in the country that grow corn using the correct technological processes, equipment and seeds getting 12-14 tonnes per hectare.
“We grow three times more than we are able to consume. We export two-thirds. If we boost our production potential, we will export more and more in percentage,” he said.
According to Horbachev, if Ukraine does not increase grain exports, there will be other suppliers on the global market, and the country will lag behind not only in aircraft and rocket manufacturing, but also in agriculture.
“Traders perform one of the most important functions – they take excess grain that cannot be consumed here in Ukraine from the market,” he said.
Ukraine since the beginning of the 2020/2021 marketing year (MY, July-June) and as of March 26, 2021 had exported 34.45 million tonnes of grains and legumes, which is 22.6% less than on the same date of the previous MY.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, 14.16 million tonnes of wheat, 15.64 million tonnes of corn, 4.06 million tonnes of barley have been exported.
As of the indicated date, 96,200 tonnes of flour were also exported.
As reported, the Ministry for Development of Economy, Trade and Agriculture of Ukraine in February predicted a decline in exports of grains and legumes in the 2020/2021 MY by 20.5% compared to the previous MY, to 45.4 million tonnes.
According to the Ministry of Agrarian Policy and Food, Ukraine exported 56.72 million tonnes of grain and leguminous crops in the 2019/2020 MY.
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.
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.
