Business news from Ukraine

Business news from Ukraine

Entry of Ukrainian flour into Chinese market is strategically important step — expert

The entry of Ukrainian wheat flour into the Chinese market is a strategically important step, but one should not expect mass shipments to begin immediately, said Rodion Rybchynskyi, director of the Ukrainian Flour Millers Association.

“Opening the market at the intergovernmental level means the establishment of a legal and technical framework, but it is not a signal for an immediate start to exports. There will be no rapid commercial shipments for the time being. Signing the protocol is only the first step, which defines production and control requirements, setting the conditions for future operations,” the association’s press service quoted him as saying on Facebook.

One of Beijing’s strictest requirements remains full product traceability. This involves monitoring the entire chain: from the specific field where the wheat was grown to the final batch of flour.
According to the association’s head, building such a control system is a systematic effort that cannot be completed in a few weeks. In addition to technical barriers, exporters face complex logistics and economic challenges.

As Rybchynskyi noted, the Chinese market remains unique due to high import duties and VAT. The situation is further complicated by security risks to Ukraine’s port infrastructure, which drive up the cost of maritime transport and make assembling large shipments a difficult task.

The “Flour Millers of Ukraine” association is confident that the very fact of the protocol’s approval is a mark of quality for the domestic control system. This confirms that the flour meets the standards of one of the world’s most demanding markets, which in the long term will enable the diversification of sales of high-value-added products.

, ,