News 440 views last update:6 Aug 2012

Ukraine to stop export quotas for grains

Ukraine is considering stopping its export quota system, according to Ukrainian media quoting agricultural minister Nikolai Prysiazhnoek.

Because of the quota Ukrainian export almost came to a halt, howewer, the last few weeks suddenly 900,ooo tonnes of grains were exported.
From October 19 to December 31 of last year the Eastern European country limited its grains export to 2.7 million tonnes, consisting of 2 million tonnes of maize, 500,000 tonnes wheat and 200,000 tonnes of barley.
Little effect
Trade specialists say that stopping of the export quota will hardly influence global trade. “Wheat will probably not be shipped to Western Europe. Russia has major shortages and called on neighbouring countries to reserve grains for export to Russia,” a source said.
In normal years Ukraine mainly supplies maize to Russia, while the country purchases wheat from another former Soviet republic, Kazakhstan.
Russian wheat harvest was destroyed by increasing heat and drought. The country has large storage supplies, but wants to keep these at level.
Feed wheat scarce
Wheat for human consumption is at required levels, but in animal production there is fear for shortages of feed wheat.
Traders complain about the Ukrainian export quota. They say that it is unclear how these quotas are distributed among companies and suspect that corruption is part of the system.

Dick Ziggers

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