Ukrainian breakthrough on the grain market
2013/14 MY is somewhat unique period for the grain market of Ukraine. Despite the extreme weather events, Ukraine received the record grain production volumes, which according to analysts of APK-Inform Agency, totaled 63 mln tonnes. During recent 5 years Ukraine keeps the 6th position in the TOP-10 of the global producers of grains. In terms of rising grain production Ukraine took a big step forward in the world grain trading, and significantly increased its share in the structure of the world market during the period. According to the USDA data, in 2013/14 MY Ukraine will take the second position in the rating of the world grain exporters, against the 7th position in 2012/13 MY, leaving behind Argentina, the EU, Australia, Canada and Russia. It is a kind of breakthrough for Ukraine on the world grain market.
Changes in the structure of the global grain market caused the corresponding changing of the geography of grain exports. The share of Ukrainian grain exports on the traditional markets - the Middle East and the EU - significantly declined, with the further increase in the Asian region. Thus, the share of Ukrainian wheat exports to the EU in 2013/14 MY decreased to almost 1% (July-January), as opposed to 33% in 2011/12 season, and 14% in 2012/13 MY. Ukrainian grain shipments to the Middle East countries also significantly decreased - to 17% in 2013/14 (July-January), against 30% in the season-2011/12, and 22% in 2012/13 MY. At the same time, in the period of July-December of 2013/14 MY the share of wheat exports from Ukraine to Asian countries already reached 29% of the general exports, against 5% in 2011/12 MY, and 2% in 2012/13 MY.
The similar trend is observed in the sector of Ukrainian maize. In the period of July-January of the season-2013/14 the export share of the grain to Asian countries totaled 27% of the general maize supplies from Ukraine, while the index totaled 13% during the whole season-2011/12, and only 4% in 2012/13 MY.
During several recent seasons the EU's share in the export structure of Ukrainian maize also considerably increased. Thus, in July-December of 2013/14 MY the index totaled nearly 43% (56% in the season-2012/13, and 27% in 2011/12 MY).
Changing of the export geography is not only the expansion of Ukraine in the world arena, but also new challenges for Ukrainian grain exporters and producers. New buyers have new requirements, and it is necessary to meet them in order to keep new market positions. Will Ukraine be able to maintain its positions and take over the second place in the rating of world grain exporters?..
In addition to new challenges in the sector of world trade, Ukraine has some other factors that provide critical influence to future development of the grain market in the country.
So, to date the weather conditions remain the main critical factor forming the production and exports of grains from the Black Sea region. The infrastructural "discipline", government regulation, legislation, political component are only parts of the factors, which provide the significant impact on functioning of the grain market.
These and many other issues on functioning and development of the grain market in the new 2014/15 MY will be proposed to the conference participants for discussion with the leading global experts within frames of the thirteenth international conference "Grain Forum - 2014: new markets, challenges and opportunities", which is traditionally held on the eve of the new season on June 16-18 in Alushta (Crimea, hotel Radisson Resort & Spa, Alushta). The information-analytical agency APK-Inform is the conference organizer.
The format and program of the Grain Forum will provide the opportunity to get the maximum useful information on each segment of the market – agricultural producers, traders, representatives of the logistics and surveyor companies, grain processors, engineering companies, and financial institutions. In addition, the conference venue will provide the most comfortable environment for both business communication and entertainment program.
Organizational committee of the conference of APK-Inform Agency:
+380 562 321595 (ext.162)
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