Oil wars will push grain prices down in coming years — opinion

Oil wars among major oil-producing countries will negatively affect world grain prices in the next two years, Yuriy Kosyuk, MHP CEO and Chairman of the Board, stated in the interview for NV Business.

He stresses that the grain prices will definitely be lower. Much grain was processed into biofuels and the consumption of fuels in general and biofuels as additives to other fuels has fallen dramatically. Accordingly, Yuriy Kosyuk says, less grain is needed, it will remain on the market and pressure the storage facilities.

"I think the world grain prices will suffer along with oil prices for the next two years. Ukraine loses here, too. Moreover, this year Ukraine suffers drought and the situation in some regions is rather alarming amidst the drop in water level by almost 40%. For the agrarian country, these are serious risks that need to be addressed now," stresses Yuriy Kosyuk.

However, the businessman believes that these trade wars will not have an excessive impact on MHP.

"Poultry meat is the necessary minimum which is always in demand. When the world gets richer, those who have not eaten meat, start eating poultry, and consumers of poultry add other premium products. When the world gets poorer, the curve goes down from the premium products, people go back to poultry meat," MHP CEO explains.

Since the start of 2019/20, grain export shipment from Ukraine has reached 53.51 mln t.