Ukraine: Trade ministry unveils preferential credit treatment for grain exporters, UkgrAgroConsult increases crop forecast

Ukraine has unveiled further moves to boost its grain exports, which are flagging even as harvest hopes have grown, with UkgrAgroConsult upgrading its production estimate, Agrimoney.com reported on August, 16.

The country's trade ministry unveiled preferential credit treatment for grain exporters, in an effort to kick-start shipments which reached only 338,000 tonnes in July, the first month of 2011-12.

The move follows a farm ministry drive to boost VAT refunds to exporters buying directly from growers, and help the country fulfil its expected potential of 21m-23m tonnes of exports this year.

The weak start for exports, which contrasts with the sizzling rate of shipments from neighbouring Russia, has been attributed in part to a grain export duty, which has damaged the competitiveness of Ukrainian supplies, as well as to concerns over the quality of supplies following harvest rains.

The latest government move, which a draft proposes will be handled by Ukraine's central bank, came shortly before UkrAgroConsult lifted by 2.14 mln tonnes, to 46.26 mln tonnes, its forecast for the country's grain crop this year.

The influential analysis group cited better hopes for barley and wheat crops, following firm harvest yields, and forecast for corn lifted to 15.0 mln tonnes thanks to "favourable weather conditions".

Even so, the Kiev-based group remains behind some other observers in its forecasts, with its wheat estimate of 20.6 mln tonnes, for instance, behind a US Department of Agriculture estimate last week of 21.0 mln tonnes.

Mykola Bezugly, Ukraine's deputy farm minister, last month pegged Ukraine's total grains crop at 51 mln tonnes.

UkrAgroConsult estimated Ukraine's grain exports at 22.35 mln tonnes, including 9.7 mln tonnes of wheat, 9.1 mln tonnes of corn and 3.2 mln tonnes of barley.

UkrAgroConsult pegged the national wheat yield at 3.07 tonnes per hectare this season, and the average barley yield at 2.23 tonnes per hectare.

17 August, 2011