The situation with coronavirus should not considerably influence the Ukrainian grain export, as the demand for agricultural products depends on number of the population, which is growing, and it is less elastic than the demand for fuel, consumer goods or tourism services, acting Director General of the Ukrainian Grain Association (UGA) Serhiy Ivaschenko has said.
According to him, since the outbreak of the coronavirus epidemic in China, Ukraine has not yet felt on its part the decline in demand for cereals.
“However, it should be remembered that certain logistic restrictions, such as a ban on entering ports for ships that visited regions where coronavirus disease is detected, or credit restrictions due to the collapse of economies, can negatively affect international trade,” he told Interfax-Ukraine.
Ivaschenko said that such physical and financial limits could well have a negative impact on the dynamics of Ukrainian agricultural exports.
“At present, oil and fuel producers are experiencing a drop in demand and prices amid expectations of a decrease in transportation. A slowdown in a large economy such as China will certainly have a negative impact on other economies. If effective methods of combating coronavirus are not found in the near future, then the consequences for all the economies of the world will be very negative – an economic crisis may begin,” he said.
At the same time, the expert added that a drop in international trade will lead to an increase in product stocks and lower prices for it in the domestic market of Ukraine, as well as a drop in export revenue and national budget revenues.
Ukraine since the beginning of the 2019/2020 agricultural year (July-June) as of February 20, 2020 had exported 38.99 million tonnes of grains and leguminous crops, which is 7.9 million tonnes more than a year ago.
According to the information and analytical portal of the agro-industrial complex of Ukraine, the country has exported 16.26 million tonnes of wheat, 18.26 million tonnes of corn, and 3.98 million tonnes of barley.
As of February 20 of this year, 246,000 tonnes of flour had been also exported.
As reported, Ukraine in the 2018/2019 agri-year exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous agri-year.
Ukraine since the beginning of the marketing year 2019/2020 (MY, July-June) and as of February 17, 2020 had exported 38.36 million tonnes of grain and legumes, which is 7.5 million tonnes more than on the same date of the last MY.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, the country has exported 16.23 million tonnes of wheat, 17.67 million tonnes of corn, and 3.97 million tonnes of barley.
As of February 17 of this year, 240,600 tonnes of flour had been also exported.
As reported, Ukraine in the 2018/2019 MY exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous MY.
Ukraine since the beginning of the marketing year 2019/2020 (MY, July-June) and as of January 27, 2020 had exported 35.03 million tonnes of grain and legumes, which is 28.8% more than on the same date last MY.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, the country has exported 15.61 million tonnes of wheat, 15.11 million tonnes of corn, and 3.85 million tonnes of barley.
As of January 27 this year, 216,300 tonnes of flour has been also exported.
As reported, Ukraine in the 2018/2019 MY exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous MY.
The U.S. Department of Agriculture (USDA) in January raised its forecast for grain exports for the 2019/2020 MY by 1.2 million tonnes compared with the October forecast, to 56.14 million tonnes due to indicators for corn and wheat.
Astarta agricultural and industrial holding, the largest sugar producer in Ukraine, has invested $71 million in the development of grain infrastructure under the Grain of Astarta investment program launched in 2014. According to a posting of the company on its Facebook page, over the past two years Astarta build four silos in Poltava region and bought Krasyliv silo in Khmelnytsky region.
“The grain infrastructure development program, launched by the company in 2014, has so far been implemented in the form of seven modern (both newly-built and modernized) silos with a total capacity of 550,000 tonnes, as well as its own fleet of 200 railway cars,” the agricultural holding said.
In general, since the beginning of the program, the company has invested $71 million in this direction.
“Starting Grain of Astarta as a program for expanding facilities for our own needs, we have reached the level of providing services and developing eco-systems that are formed around our infrastructure facilities. And we do not stop there. We see great prospects for development and are considering new partnership projects in Chernihiv and Poltava regions,” Astarta Executive Officer Valeriy Sokolenko said.
Astarta is a vertically integrated agribusiness holding operating in eight regions of Ukraine. The holding includes eight sugar factories, agricultural enterprises with a land bank of 243,000 hectares and dairy farms, a biogas plant and a soybean processing complex in Poltava region.
Grain and leguminous crop harvest in Ukraine in 2019 was around 75 million tonnes compared with 70.1 million tonnes in 2018, according to the Ministry of Economic Development, Trade and Agriculture.
“According to the ministry, the grain harvest amounted to about 75 million tonnes, of which 54 million tonnes will be exported to foreign markets. We will receive final forecasts for grain production in March according to the State Statistics Service,” Deputy Minister of economic, Economic Development, Trade and Agriculture Taras Vysotsky said.
The ministry said that as of January 10, 2019 and from the beginning of the 2019/2020 agricultural year (July-June), Ukraine exported 32.08 million tonnes of grain, which is 7.8 million tonnes more than in the same period of the previous agri-year.
In particular, the following crops were delivered to foreign markets: 15.1 million tonnes of wheat, 12.8 million tonnes of corn, 3.8 million tonnes of barley, and 5,000 tonnes of rye.
In addition, 197,000 tonnes of wheat flour and other crops were exported, which is 68,500 tonnes more than in the corresponding period of the previous agri-year.
