Economy Ministry and grain traders agreed to limit wheat export from Ukraine
The Ministry for Development of Economy, Trade and Agriculture of Ukraine and grain traders signed a document which provides for a limit of wheat export from Ukraine in 2019/20, i.e. until June 30, 2020, at 20.2 mln t.
The agreement is aimed at ensuring the export projection, stability of the grain market in the country, as well as preventing the flour prices from rising.
The American Chamber of Commerce in Ukraine, the Ukrainian Grain Association (UGA), the European Business Association (EBA), the Grain and Feed Trade Association (GAFTA), the All-Ukrainian Agrarian Forum and the Minister for Economic Development, Trade and Agriculture of Ukraine Igor Petrashko signed a supplement to the Memorandum of Understanding.
"Ukraine remains a strategic and reliable partner for grain supplies to foreign markets. Traditionally, in our country food wheat is produced more than it is consumed, so we can guarantee both domestic food security and food for the whole world. At the same time, given the rapid development of events, we will closely monitor the rate of wheat exports and in case of significant excess, take the necessary measures to ensure national food security," commented Igor Petrashko.
As of Mar. 26, according to the data of the State Fiscal Service of Ukraine, approximately 18 mln t of wheat, wheat and rye mixtures with flour in terms of grain were exported from Ukraine, including 11.1 mln t of food wheat (incl. flour in terms of grain). Annual domestic market demand for food wheat in Ukraine is 4.8 mln t.
Note: The Grain Memorandum has been concluded annually since 2011. The current Memorandum was signed on October 3, 2019, and provides for cooperation of grain market participants, information exchange, grain market monitoring. The document has been approved by the parties to the Memorandum and is a supplement to the Memorandum.
As a reminder, since the start of 2019/20 (July 2019 – June 2020), Ukraine has supplied 45.41 mln t of staple grains to foreign markets. The wheat shipment has reached 17.82 mln t, 33% or 4.37 mln t more YoY.