Bread producers ask the Government to limit the export of milling wheat

7 August 2018, 15:25, Processing

Producers of bread are concerned about the volumes of bread grain exports from Ukraine, and therefore asking the Government to introduce quotas, Agroinsider.com reports.

According to them, it is required for the stable supply of bread to Ukrainians this year and next year, until there is new crop.

The volume of intended quotas is not specified by the participants of the bakery market, however, 100% of the export of milling wheat is reported. Last season, milling wheat exports from Ukraine reached 10 million tons, including the equivalent in wheat flour.

"If no decision is made concerning the ban on the export of second and third class milling wheat, there will be a collapse. Milling wheat will be exported through August, September, October, and by November there will be none in Ukraine. And whatever remains will cost 20-30% more than the world price," said the founder of the holding Kulinichi Volodymyr Misik.

The CEO of the company Kyivkhlib Volodymyr Chereda noted that the grain export for Ukraine for today is the largest source of foreign currency earnings, and directly affects the stability of the national currency. He also informed that on August 3, 2018, a meeting with bakers had been held in the Ministry of Agrarian Policy and Food of Ukraine, where the most recent forecast of the harvest of milling wheat in the current year was announced at the level of 14 million tons.

Chairman of the Board of the Association Ukrhliboprom Olexandr Vasylchenko notes that weather conditions have led to a deterioration in quality, and now much of the collected grain is damp, which may affect the quality characteristics of harvested crops.

The assumption that Ukraine can impose a restriction on exports caused a price jump in the international markets by 7%, but the price rolled back after these rumours were refuted.

The Ministry of Agrarian Policy and Food of Ukraine states that today the direct restriction of the export of milling wheat from Ukraine is not the case.