Ukrainian grain Association opposes restrictions on exports of corn

2021-01-20 12:02:48
Machine translation
Ukrainian grain Association opposes restrictions on exports of corn

Today's higher prices for corn will enable Ukrainian farmers to increase profits on the eve of the spring sowing season, - said the Ukrainian grain Association (UGA).


Representatives of UGA, I see no reason to restrict exports from Ukraine of corn harvest 2020 and the corresponding amendments to the Memorandum between the Ministry of economic development and market participants, as informed by the letter to the designated office.


IN 2020/21 MG Ukraine had almost a record 30 million tons of corn, of which as of mid-January has exported 10 million tonnes, 3.5 million tonnes inferior to the corresponding last year's indicator. In total exports of 8 million tons was corn harvest 2020, and 2 million tons of the crop, 2019, and the needs of the domestic market does not exceed 5 million tons.


After the completion of the peak period of export of corn when the pace of exports will slow down in the country the remains of the corn harvest 2020 amount to more than 21 million tons, so it is inappropriate to speak about the deficit of grain and to limit its exports, which is less than last year.


High corn prices in Ukraine – is not a consequence of low yields or shortfall, and the global trend of rising prices due to a massive infusion of funds to the economy of different countries. The continuation of this trend will allow prices to return to previous levels. However, the government should not try to reduce the price of grain administrative restrictions of export, in order not to deprive producers of profit that will compensate for the loss of last year and it is good to carry out the sowing campaign. Grain prices should be formed not administratively, but only market mechanisms, levers of influence on the government.


the acquisition of Ukrainian producers every year the best yields and income will increase foreign exchange earnings from exports and budget revenues, which is very important in the current crisis period. It is an agricultural sector provides over 40% of Ukraine's exports, so it is important now to sell the existing balances on high prices next year may be significantly lower. And storage of corn is much more expensive than other crops.


Ukraine is the world's leading food exporter, so the authority is responsible for food security not only in our country but throughout the world. On it also works UGA, and trying to avoid steps that will harm the economy.


Recall that at a recent meeting of the Ministry of economy representatives of the Union of poultry farmers, breeders Mormoiron Ukraine and Tvarinprom proposed to limit corn exports at 22 million tonnes, to reduce the price of grain on the domestic market.

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