News
26.10.2012
Ukrainian corn exports to China and Japan may double
According to a study of the Association "Ukrainian Agribusiness Club" (UCAB) "Largest crop holdings in Ukraine", domestic corn exports to the Far East countries may double next year.
In 2011/12 MY Ukraine exported to the Far East countries 1.95 mio tons of corn. Thus over 90% of supplies were made to Japan and South Korea, which are the largest importers of corn in the world. So, according to the results of 2011/12 MY, Ukraine's share in the structure of corn imports of South Korea and Japan amounted to 12% and 6% respectively. It should be noted that just a year ago the presence of Ukrainian corn in these countries was actually at zero level.
Mr. Slastyon – UCAB Adviser on agricultural markets, claims that Ukrainian corn actually constricts the dominant American corn in the Far East market and next year will expand its presence in the region. "Significant export potential of Ukrainian corn, more attractive price compared to U.S. corn and announced intentions of China to import Ukrainian grain, provide the platform to forecast the potential corn exports at the level of 4 mio tons," – the expert said.
According to a new report of the International Monetary Fund "Global Economic Prospects", in the past two years, the stocks-to-use ratio for grain and oil-bearing crops in the Far East countries demonstrates a significant inability of self-provision with these crops. So, in the Far East countries, the stocks-to-use ratio for corn is 30% lower than the average index of 1980-2010.
"Naturally, these countries will try to fill their buffer stocks, and this is quite an opportunity for Ukrainian corn producers and exporters - Mr. Slaston remarked. - In addition, Ukraine has successful experience in expansion of the key markets for corn and Egypt may serve as the brightest example of that: in 2010/11 MY, the share of imports of Ukrainian corn to Egypt was about 15%, when in 2011/12 MY Ukraine supplied 60% of all Egypt corn import supplies."
Note. "Largest Crop Holdings in Ukraine" - is an annual study of the Association "Ukrainian Agribusiness Club", devoted to the analysis of structural changes and corporate governance in grain, oil and fat, sugar and beat, and vegetable industries. The study provides information on TOP-producers and exporters of crop products, cost and profitability analysis of crop production with calculations on optimum yield capacities, technical and economic efficiency; comparative analysis of expenses, as well as analysis of macroeconomic issues, such as the impact of the accession of the Russian Federation to the WTO and the conclusion of agreements by Ukraine on free trade zones. The structure of the study is available here.
Association "Ukrainian Agribusiness Club"
Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001
Phone: +380 44 201-4950
Fax: +380 44 201-4951
099 272 59 30
Tetiana Kotyk
www.agribusiness.kiev.ua
The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.
