The FINANCIAL — The grain pool of Ukraine, the Russian Federation and Kazakhstan is able to take the first place among main world wheat exporters from the USA, declared Alexander Dmitriev, the head of the analytical department of the company of assets management "Bonum Group".
According to the expert, during the initial period, the alliance will deal mainly with coordination of own marketing policy. The further cooperation in the production industry is less probable due to the absence of tangible benefit to Ukraine. The country has the risk to become fixed exporter of feed grains as opposed to own neighbors – sellers of expensive soft wheat.
According to A.Dmitriev, the agreement about foundation of the grain union provides evident advantages to all three countries. The former competitors will practically share the market, optimize marketing budgets and turn out to be the strong lobbyist force for advertising of own goods.
During 11 months of the current marketing year (July 2008 – May 2009), wheat export indices of the neighbors of Ukraine were rather high. The general volumes of exported grain exceeded the level of 31 mln tons, including 16 mln tons from Russia, 11 mln tons from Ukraine and nearly 5 mln tons from Kazakhstan. And in the current year American agrarians, leaders of world wheat exports, plan to export 27 mln tons of wheat only. The general annual export potential of wheat in the world totals nearly 112-115 mln tons. Thus, the participants of the grain pool take nearly 23-24% of the world market and have the first place of the world wheat exports.
During 2000-2009 period, three countries have increased own wheat export share by four times (from 6% in 2000). The results can be even more impressive in the terms of widening of the geography of sales, according to the expert.
Discussion about this post