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April 20 2013, 11:04 Source: APK-Inform Views: 2240

Ukraine - market of wheat bran in the season-2012/13

 

 

Wheat bran is widely used as the raw material for production of different mixed feeds used in the cattle breeding industry, and is the indispensable source of fiber, the most important macro-and micro-nutrients. In the present article, we consider the condition of the market of wheat bran of Ukraine in the current season.

 

Wheat bran is the by-product of flour milling production, directly related to the volumes of flour output. Generally, according to the State Statistics Service, the annual volumes of flour production in Ukraine varied within the range of 2.2-2.3 mln tonnes during recent 3 seasons. According to estimations of APK-Inform Agency, during recent 3 seasons the average annual rate of production of wheat bran totaled nearly 650 thsd tonnes. During July-February of the current 2012/13 MY the production of wheat flour totaled 1.5 mln tonnes, the production of wheat bran is estimated at 440 thsd tonnes.

During several seasons in a row OJSC "Kyivmlyn" remains as the largest producer of wheat flour, and therefore wheat bran, the share of the enterprise covers 6-7% of the general flour and wheat bran production in Ukraine. The structure of the TOP-10 of flour millers remains relatively stable from year to year, changes basically influence their positions in the rating. And how the enterprises are located in the TOP-5 in the current season? So, during 8 months of the current season the company SE "Novo-Pokrovskij Baking Complex" takes the second place with a share of 5.1% in the general wheat bran production in the current season-2012/13 (in 2011/12 MY the company took the 4th place with a share of 4.8%). As the season before, the third place is occupied by OJSC "Simferopol Baking Complex" with a share in the production of wheat bran of 4.6% (in 2011/12 MY - 4.8%). The company OJSC "Luganskmlyn" takes the fourth place with a share of 4.6% (in 2011/12 MY – the 6th place with a share of 3.4%). LTD "Dnepropetrovsk mill combine" closes the TOP-5 of leaders with a share of 4% (in 2011/12 MY the company also took the 5th place).

 

 

TOP-10 companies by production of wheat bran in 2012/13 MY (July-February)

 

 

Enterprise

Volume,
`000 tonnes

Share

 

Kyivmlyn

25,3

5,7%

 

Novo-Pokrovskij Baking Complex

22,5

5,1%

 

Simferopol Baking Complex

20,4

4,6%

 

Luganskmlyn

20,3

4,6%

 

Dnepropetrovsk mill combine

17,7

4,0%

 

Trading company "Urozhay"

17,2

3,9%

 

KOMBINAT KHLIBOPRODUKTIV "TALNE"

16,7

3,8%

 

Vinnytsia Baking Complex №2

13,7

3,1%

 

ROMA

10,2

2,3%

 

KULINDOROVKA Baking Complex

8,7

2,0%

 

OTHERS

267,3

60,7%

 

TOTAL

440,0

 

 
       

 

Price situation on the market of wheat bran

In the current season, the domestic consumers showed a consistently high interest in purchasing of wheat bran. It is worth noting that even weekly growing of selling prices for the finished product by nearly 50-100 UAH/t per week did not significantly affect the interest of market participants in purchasing of wheat bran. According to the market operators, insufficient number of offers of feed grains on the market became the main reason for increasing of the prices.

It should be noted that since the end of March 2013, the demand for the reporting type of product from the majority of customers slightly fell. At the same time, according to a number of flour millers, the situation was not critical, and overstocking of the storehouses was not observed. In order to enhance sales of wheat bran, some grain processors cut the offer prices by nearly 50 UAH/t.

According to results of the monitoring conducted by experts of APK-Inform Agency, as of the end of April, the average selling price of wheat bran totaled 1375 UAH/t EXW. It should be noted that in the previous year in the same period, the offer prices for wheat bran often varied within the range of 800-1100 UAH/t EXW.

 

Export supplies of wheat bran

During several recent years, Ukraine increased the supply volumes of wheat bran on foreign markets. Thus, in 2011/12 MY the exports increased by 48%, compared with the previous season, and totaled 371 thsd tonnes.

In 2012/13 MY the exports continued its positive trend, it should be noted that a few months of the season were characterized with the record high monthly volumes of supplies of wheat bran (August-October 2012 and February 2013). During the first 8 months of the season wheat bran exports totaled 285 thsd tonnes, up 27% compared with July-February of 2011/12 MY, and up 13% compared with the whole 2010/11 MY, and became the record export volumes for the period of July-February.

Generally, in the current season the geography of export supplies of wheat bran from Ukraine included 7 countries (in 2011/12 MY - 9 countries). Despite the growth in export shipments of wheat bran, the geography of supplies did not significantly change. Traditionally, Turkey purchased the major volumes of wheat bran supplies. In the current season the country covered 83% of the general exports of wheat bran in July-February (50% - for the whole 2011/12 MY). Also, Morocco purchased quite significant volumes of Ukrainian wheat bran - 11% during 8 months of 2012/13 MY (30% - in 2011/12 MY).

Also, Egypt and Syria are often featured in the geography of wheat bran exports from Ukraine, though not with such significant volumes, as Turkey and Morocco.

 

 

 

TOP-10 companies by wheat bran exports in 2012/13 MY (July-February)

 

 

Enterprise

Volume,
`000 tonnes

Share

 

Kyivmlyn

24,6

8,6%

 

Trading company "Urozhay"

23,8

8,4%

 

Dnepropetrovsk mill combine

19,1

6,7%

 

Luganskmlyn

18,7

6,6%

 

Orelskiy elevator

16,0

5,6%

 

KOMBINAT KHLIBOPRODUKTIV "TALNE"

15,8

5,6%

 

Novo-Pokrovskij Baking Complex

12,8

4,5%

 

Kirovohrad Baking Plant

11,2

3,9%

 

KULINDOROVKA Baking Complex

10,4

3,6%

 

Cherkasy Baking Complex

9,7

3,4%

 

OTHERS

122,8

43,1%

 

TOTAL

285,0

 

 
       

 

 

 

 

 

 

In the current season OJSC "Kyivmlyn" became the leader of wheat bran exports among the leading Ukrainian companies - it covered 8.6% of the the general exports of wheat bran. In 2011/12 MY the company occupied the third place with a share of 8.5%.

Then, in the current season "Trading company "Urozhay" LLC took the second place with a share of 8.4%, in the previous season the company headed the top of exporters, its share in the exports of wheat bran totaled 10.2%.

The third and fourth places with little difference in the volumes of exports were occupied by LTD "Dnepropetrovsk mill combine" and OJSC "Luganskmlyn", respectively.

Generally, by the end of the current season, the production of wheat bran may reach 644 thsd tonnes. Taking into account the forecasted production volumes and the current rates of exports, in 2012/13 MY the export potential of wheat bran is estimated at 380-390 thsd tonnes.

It is still early to make any forecasts for the new season, because the production of wheat bran will depend on the demand for the products on foreign markets of the country, due to the fact that the domestic consumption has rather limited character in recent years, showing little decline. Besides, the feed grain group also influences the situation on the market of wheat bran.

You can receive more detailed data on development of the market of wheat bran in 2013/14 MY, while participating the Twelfth international conference "Grain Industry - 2013: processing, new markets, innovations", to be held on May 23-24 in Odessa (hotel "Bristol").

 

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