World Grain - May 2020 - 36

FEATURE: BLACK SEA COUNTRIES TIGHTEN GRAIN SUPPLY GRIP

attractive prices in the export market,
Vladimir Chereda, director of the Ukraine
DJULFXOWXUDOFRPSDQ\.LHYKOHEVDLG,QWKLV
situation, the restrictions on grain exports
appears to be a least-evil solution, he added.
The proposal has been lambasted
by Ukraine grain exporters. Nikolay
Gorbachev, president of the Ukraine grain

association, argued that the proposed measure "would drive the industry to catastrophe" and "would cause a tsunami that
could damage the entire Ukraine economy," since grain exports generated $9.6
billion for the country in 2019, or 40% of
the total country's export revenue.
The government is not rushing to in-

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troduce restrictions on grain exports.
To maintain the price stability on
the market, it would be enough to
introduce government regulation of
prices on 10 goods with high social
importance, like milk, eggs, poultry,
VXJDUDQGÀRXUVDLG,JRU3HWUDVKNR
Ukraine Economy Development
Minister.
This is the worst possible scenario, said a Ukraine farmer who
wished to not be named. The price
of premixes sharply rose, the price
of feed grain already has climbed
by 30% and so livestock producers'
costs have been seen skyrocketing.
Without measures to constrain the
rise in production costs or some
direct subsidies, the government
could destroy half of the livestock
industry, he added.
Speaking recently to Reuters,
Ukraine Deputy Economy Minister
Taras Vysotskiy said Ukraine could
introduce restrictions on grain exports if the country exports more
than 2 million tonnes in April.
However, Vysotskiy added it was
unlikely this would happen. Ukraine
LVH[SRUWLQJLWVJUDLQPDLQO\WR,UDQ
Turkey and Egypt, according to the
government's estimations.
Last year's grain harvest reached
a record 75.1 million tonnes, up
from 70 million tonnes in 2018.
Ukraine could export a record 52
million to 55 million tonnes of
grain this season, including 19 million to 20 million tonnes of wheat,
Vysotskiy said.
+RZHYHU JRYHUQPHQW R൶FLDOV
are concerned about how unfavorable weather conditions could affect the 2020 harvest campaign.
3URGXFWLRQLVH[SHFWHGWRVKULQNWR
70.4 million tonnes, according to
the Ukraine Economy Ministry.
Vladislav Vortonikov is a correspondent
from Voronezh, Russia. He may be reached
at Vorotnikov.vlsl@gmail.com.
We want to hear from you - Send comments and
inquiries to worldgrain@sosland.com. For reprints
of WG articles, e-mail reprints@sosland.com.

May 2020 / World Grain / www.World-Grain.com


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World Grain - May 2020

Table of Contents for the Digital Edition of World Grain - May 2020

World Grain - May 2020 - 1
World Grain - May 2020 - 2
World Grain - May 2020 - 3
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