Ukraine: grain production doubled its consumption volumes – APK-Inform

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The FINANCIAL — Traditionally, Ukraine keeps rather high level of grain provision for domestic needs. Due to successful development of the agricultural production industry, grain surpluses started dominating in the total supply structure, which then transformed into significant export potential.

Thus, in 2014/15 MY the record harvest volumes of grains in Ukraine (63.9 mln tonnes) exceeded the volumes of domestic consumption (28.7 mln tonnes) in more than 2.2 times. Such volumes allowed forming the significant export potential at the level of 35.4 mln tonnes. But in terms of slight declining of the harvest volumes of grain crops in the current season, the share of domestic consumption was estimated at 45%, and APK-Inform analysts forecasted the export potential of Ukrainian grains at the level of 31.4 mln tonnes.

At the same time, the oilseed segment of Ukrainian agrarian market shows somewhat different situation. Almost 80% of oilseeds produced volumes are processed on the domestic market, and Ukraine exports the value-added finished products. According to APK-Inform experts, in 2015/16 MY the share of domestic oilseeds processing in Ukraine will reach 79%, or 13.3 mln tonnes in absolute terms. It should be noted that such model of raw materials distribution is rather effective, and allows to Ukraine to lead the global market of sunflower oil exports.

Therefore, we can talk about advisability of further optimization of agricultural crops distribution in the grain segment, while keeping the current positions on the world market of raw materials exports. Ukraine is quite able to develop the domestic processing of grains and increase the exports of value-added finished commodities.

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