No suppositions for Ukrainian grain exports limitation — Igor Schwayka
It is necessary to note, 2013/14 season was rather complicated for Ukrainian agrarians. First, the winter grains planting campaign was held under the unfavorable weather conditions. Thus, long rains caused the field works delay which in further can negatively impact on 2014-crop. At the same time, the mild weather after rains allowed the agricultural producers successfully finish winter grains planting works. The other situation was in the sector of spring grains, where the stated weather conditions positively influenced on the planting campaign. The negative factor was worsening of political and economic situation in Ukraine. The Minister of Agrarian Policy and Food of Ukraine, Igor Schwayka to tell about the results of 2013/14 season and prospects of the new MY.
- To date it is possible to finalize the planting campaign. Are the all plans completed? What are the major difficulties for planting works-2014?
In total, the planting campaign is over. To date the Ukrainian producers are preparing for harvesting.
As for difficulties, the agricultural producers faced prices significant increase for fuels and lubricant
materials, in Eastern oblast of Ukraine there was artificially made the unstable situation, there were deficit and expensive credit and financial resources as well.
- What did the Ministry do in order to help agrarians to overcome the stated difficulties?
First of all, the Ministry regular contacted with the market participants and provided them with seeds, crop protecting agents and permission documents lending.
- Ukraine started harvesting works. Did the Ministry provide agrarians with all the resources, being necessary to complete harvesting works in optimal terms?
There is always shortage of resources. To date, there is the sufficient volume of resources in order to start the harvesting campaign. During the one, the Ministry will monitor the situation in operative terms.
- Can you provide with the preliminary data on the crop yield? Is it different from the last year one?
Due to the war conditions in Ukraine, any forecasts and current data is confidential information. It is a military secret.
- But the Ministry of Agrarian Policy provides with the operative information about harvesting works progress.
It is absolutely serious. Yield and harvesting, and its results in the first way, grains in particular, is the information not to be divulged. It also not to be popularized.
- At any later dates the Ministry will not provide with the information on field works progress?
Previously, the Ministry provided with such information. But to date we reconsider the stated position and probably the information will be private.
- The Ukrainian grain market is export-oriented so the issue is on the exports' volume. A lot of exporters stated the current year harvest will be lower, compared to the previous record one, but still in the range of the average rate. Thus, in season-2014/15 the exports to decrease as opposed to the current one. Before, the Ministry regulated exports within the executed memorandum with traders. Will the Ministry continue the stated practice? Will there be grain exports limitation in the current season?
To date the Ministry is considering the issue on memorandum prolongation. Approximately, it will be in the period of late June-early July.
In total, to date there are no factors able to influence significantly on the Ukrainian grain exports, and, in particular, cause its quotation or limitation.
- Will the project on Dnieper bed bottom dredging, developed by Nibulon company, be realized in the current season? The stated project allows to increase the grain shipments by river transport.
The ministry supports the stated initiatives. But to date, the issues on rivers' conditions and shipping industry are under the control of the Ministry of Infrastructure of Ukraine. Thus, when the Ministry of Agrarian Policy and Food is responsible for the stated issues, it will manage the process.
- The agrarians try to purchase necessary resources for field works as early as possible. Thus, one of the factors of normal spring planting campaign was purchasing of some of the necessary resources before there was crises in the country. However, the agrarians will have to purchase the necessary resources, for autumn planting works, considering the new Hryvnia’s exchange rate against foreign exchange and under the unstable situation in the country. How can the stated issue influence on the winter grains planting campaign and cost of their production?
There is no doubt, that we will able to make the necessary decisions and at the governmental level as well. To date the Government allocates funds on anti terroristic operation. If in the beginning of the autumn planting campaign there is a shortage of some resources, we will find the adequate solution at the governmental and parliamentary level, and in cooperation with the President as well, in order to hold the planting campaign in time and qualitatively. At the same time the decisions on the mechanism to be made in cooperation with the market participants. Note, we plan to invite industry associations, which will engage producers and traders in order to find the ways for situation solving.
In general, everything will be well, and with harvesting works as well. And we will find resources to hold the winter grains planting in autumn successfully
Interviewed by Alina Styozhka
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