The Ukrainian Grain Association sees no preconditions for determining the maximum volume of corn exports in 2020 and amending the relevant annex to the Memorandum between the Ministry of Economy, Trade and Agriculture of Ukraine and business associations to coordinate positions in the grain market for the 2020-2021 marketing year. ProAgro Group.
According to the association, in the 2020/21 season, Ukraine received one of the best corn harvests of all years – about 30 million tons, while domestic market needs reach about 5 million tons annually. As of mid-January, Ukraine exported about 10 million tons, which is almost 3.5 million tons less than last season on this date. Moreover, of these 10 million tons of exports, only 8 million tons of corn of the new harvest of 2020. The remaining 2 million tons are corn for the 2019 harvest. Today, the country still has more than 21 million tons of corn of the new harvest and it is inexpedient to talk about a deficit, as well as determining the maximum export of this crop is also impractical. Ukraine has already passed the peak period of corn exports (which is much lower than last year), so the rate of exports will decline.
“As for the high price of Ukrainian corn, it is not the result of lower yields or shortages of this crop in the domestic market. This is a consequence of global price inflation, which is caused by trillions of infusions into the national economies of different countries. This trend will continue in the future, so it is unlikely that the market will see the prices that were before. Under such conditions, the government should not artificially administratively reduce grain exports by restricting corn exports. After all, in this way the government will only deprive the domestic producer of the opportunity to compensate for the troubles experienced by farmers in the last calendar year, and to get better financial opportunities on the eve of the spring sowing campaign,” UGA stressed.
UGA is convinced that pricing in Ukraine for grain should be formed only by market mechanisms, not administrative ones. And for this, the government has market leverage.
