More focused attention to quality and safety of agricultural products, consequences of political turbulence and economic crisis are the new challenges the grain market participants will face additionally to the already existing problems, declared the President of the Ukrainian Grain Association (UGA), Mykola Gorbachev.
“Favorable weather, good trade results of last season give us reason to believe in high grain production in 2020/21 MY that could even exceed the last year level. Thus, both exporters and producers will face the same old problems as year ago (mainly logistical) as well as new developments of importers’ requirements”, - he said.
M.Gorbachev supposed that the new rules of importers as to the acceptance and transportation of cargoes would drive the grain market in 2020/21 MY. First of all, this refers to quality and safety of agricultural products as the EU introduces the new requirements as to the chlorpyriphos content.
“It is still the question for both traders and farmers how Ukraine for its part could control the new requirements for quality and safety of grain supplied. Europe imports about 30% of the total volume of Ukrainian grain export and is large consumer of oilseeds. The development of the new rules of quality and safety control will be essential for all exporters in this season”, - he emphasized.
He added that we should remember about political and economic turbulence in the world – coming presidential elections in the USA, economic assistance to the countries suffered from the coronavirus pandemic that could change significantly global economic and financial environments. For example, currently, the USA inject trillions of USD into its economy weakening the dollar that has already influenced on grain trade distribution.
More detailed information about the challenges of the current grain season and their influence on business and trade M.Gorbachev will provide within the section «GrainTrade: new season - new challenges» at «GMD Conference 2020: Summer Edition» (Odessa, August 20).