High competition rates on the global market - key factor for development of the Ukrainian grain market in 2017/18 MY

Source

APK-Inform

921

According to APK-Inform estimations, in 2017/18 MY the general harvest of grains and pulses in Ukraine will reach 64.4 mln tonnes, which will form the export potential at the level of 39.9 mln tonnes.

At the same time, there can be some troubles in realization the reporting potential. First of all, in terms of record grain production volumes in Russia, the competition rates in the major markets of Ukrainian grains, such as Egypt, etc., will significantly increase. In 2016/17 MY, Ukraine supplied 14% of the general wheat exports to the country, and 16% of corn exports. Also, the market is quite important for Russia. Therefore, in the current season competition in both grain price and qualitative indices will become a key factor for the grain market of Ukraine.

Taking into account the factor, development of the domestic processing and export selling of finished products is considered as one of the most prospective directions, such as the flour milling segment in Ukraine, for example. In 2016/17 MY, Ukraine exported the record volumes of flour - 401.6 thsd tonnes, and in the current season the export volumes can even increase. So, in July-August of the current MY Ukraine already exceeded its export volumes of flour by 23% compared with the same period of 2016/17 MY. Also, Moldova is one of the key directions, which purchased 8% of the general export of the Ukrainian product.

You can become acquainted with more detailed information about development prospects of the grain market of Ukraine in 2017/18 MY from the report of the Head of Business project unit at APK-Inform Agency, Rodion Rybchinskiy within frames of the Agro-logistics forum "Dnieper-Danube-Black Sea", to be held on October 18-19, 2017, in Chisinau, Moldova.

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