Business news from Ukraine

UKRAINE EXPORTS ALMOST 24 MLN TONNES OF GRAIN AS OF FEB 3, MILLS RECEIVE FIRST QUOTA FROM EU

5 February , 2016  

KYIV. Feb 5 (Interfax-Ukraine) – Ukraine since the beginning of 2015-2016 agricultural year (July-June) as of February 3, 2016 had exported 23.85 million tonnes of grain, including 11.066 million tonnes of wheat, 3.94 million tonnes of barley and 8.691 million tonnes of corn.

President of the Ukrainian Grain Association Volodymyr Klymenko said at a press conference in Kyiv on Thursday that 180,000 tonnes of wheat flour and 1,600 tonnes of other flour were exported. Exports of grain and flour reached 24.092 million tonnes.

Director of Millers of Ukraine association Rodion Rybchinsky said that Ukrainian millers received a first quota from the EU that is separate from grain traders.

“Yesterday first a Ukrainian enterprise officially received a quota of 5,000 tonnes to export flour to the EU without duties,” he said.

Rybchinsky said that there is a common quota for supplies of wheat and wheat flour to the EU of 900,000 tonnes, which grain traders used by the middle of summer without millers. Before 2016, flour almost was not shipped to Europe.

“There was a certain scheme for operation. Several companies worked out technological and logistic processes and this year received first quotas… Now three more companies are passing the same process to receive the quota of some 15,000-17,000 tonnes,” he said.

Rybchinsky said that despite a decline in flour production in 2015 by 24%, exports are growing. If in 2014 245,000 tonnes of flour was exported, in 2015 304,500 tonnes worth $70 million was exported.

However, the general average cost of exports contracts fell by 20% compared to 2014.

The largest importers of Ukrainian flour are China, North Korea (via China), Israel, Moldova, Indonesia, Palestine, South Korea, Syria, Panama and Philippines.

“If Israel and Moldova are permanent importers of Ukrainian flour, North Korea, Panama, Philippines and Indonesia are considerably boosting exports – by 1.5-2 times compared to 2014,” he said.

He said that in 2014 Ukraine exported flour to 44 countries and in 2015 to 69 countries.