Ukraine: limited supply of buckwheat in 2015/16 MY

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The FINANCIAL — In 2015/16 MY, Ukraine will face some decreasing of the production volumes of buckwheat – to the level of 139 thsd tonnes, down 17% compared with 2014/15 MY (167 thsd tonnes). Thus, in the current season the distribution of buckwheat per capita will total 3.2 kg only, whereas five years ago (in 2011/12 MY) the index totaled 5.9 kg, declared Andrew Kupchenko, grain markets analyst at APK-Inform Agency, on September 24 at the conference “Flour & Groats: raw materials, market, technologies” in Kiev.

In addition to reduction of buckwheat production in 2015/16 MY, Ukraine will decrease food processing of the grain – to 150 thsd tonnes, as opposed to 160 thsd tonnes in the previous year. But such decreasing is quite insignificant, because Ukraine has quite high demand for the finished product. But taking into account the reporting decreasing of food consumption, the index still exceeds the current volume of buckwheat production, said the expert.

Also, A.Kupchenko added that the current situation provided its corresponding impact on the price development in the market segment.

So, at the end of 2014 the average offer prices for Ukrainian buckwheat increased to almost 9`000 UAH/t EXW. In the beginning of 2015, the prices grew to almost 11`000 UAH/t, due to another cycle of UAH devaluation. At the same time, after the UAH exchange rates stabilization, the grain prices did not reduce. Moreover, there was observed a slight increasing of prices, which even exceeded 11`000 UAH/t, said the analyst.

According to A.Kupchenko, the limited supply of grain raw materials, coupled with high demand for the finished product, provided the reporting effect on the price situation in the market segment of Ukraine.

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