Ukrainian flour exports to fall 2.5x in 2020/21 — Rybchinsky
Wheat flour production in Ukraine in 2020/21 is expected to decrease by 9.7%, to 1.96 mln t, while exports will fall 2.5x, to less than 130 thou. t against rising wheat prices, stated Rodion Rybchinsky, the head of the Association Millers of Ukraine, Interfax-Ukraine reports.
"Flour production has been declining year on year for a decade even taking into account the shadow market, the share of which is estimated at 25-30%. In the current year, I think production volumes will be close to 2 mln t of wheat flour, which accounts for more than 95% of total production," the association head stated.
Rodion Rybchinsky also marked the growth of exports of bakery and flour confectionery products in 2020, which grew by 3.8% in volume terms, to 10.8 thou. t, and by 13.8% in value terms, to USD 198 mln. At the same time, imports of these products increased by 19.2%, to 3.1 thou. t in volume terms, and in value terms by 24%, to USD 101.3 mln over the same period.
Dozens of flour producers, mostly located in rural areas, close down every year in Ukraine. According to Rodion Rybchinsky, most of these enterprises are budget-forming for their localities, as the flour production cycle provides jobs for up to 100 people.
As of Feb. 10, flour export from Ukraine reached 88.9 thou. t, 144.7 thou. t or 61.94% less from the prior year's comparative indicator (233.6 thou. t).