Ukrainian Grain Association has addressed to the industry ministries asking to resume wheat exports and eliminate the export licensing, as Ukraine has surplus of wheat stocks at a time when ports are blocked for exports.
Elimination of licensing will allow easing of wheat export and providing storing facilities for next crop.
“In 2021, Ukraine produced record 33 mln tonnes of wheat. Domestic consumption of both food and feed wheat is about 5.7 mln tonnes per year. Wheat export was agreed at 25.3 mln tonnes for 2021/22 MY. As of March 1, Ukraine exported only 18.2 mln tonnes of wheat. Taking into account record high carry-over stocks, Ukrainian elevators are storing about 12 mln tonnes of wheat. It is less than three months left before the harvesting of the next crop, while the domestic consumption will be about 1.5 mln tonnes over this period”, – the UGA said.
Current conditions of winter wheat are good. There are no risks of crop failure except the Russian military aggression in certain regions. As seaports are blocked, Ukraine can export by land only to the EU countries with further reloading of Ukrainian grains and oilseeds in the ports of Black and Baltic seas.
Land export capacity is very limited. The UGA estimates this capacity at 20 thsd tonnes per day, 10 time less than the capacity of ports. Therefore, Ukraine will be able to export 2 mln tonnes of grain, including wheat and corn, at best.
“The export is essential for currency revenues and for farmers to perform spring planting campaign. Today, we have about 22 mln tonnes of grains at elevators free to export. We can ship this volume without risks for country’s food safety. Taking into account previous high production volumes and export halt, Ukraine can face shortage of grain storing facilities”, – the UGA said.