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Ukrainian grain among world leaders

November 11, 2009

Ukrainian grain trades are proving leaders in the sale of grain on world markets this year.

Experts are saying that Ukrainian exporters have gained considerable competitive advantage thanks to a combination of events on world markets: freight costs have gone down and the hryvnia is cheaper. This has made shipping export commodities both more profitable and more efficient.

Ukrainian grain traders were able to take top spots in Spain, Tunisia, Algeria, Egypt, Saudi Arabia, and Jordan. In addition, markets in the Far East have opened up to them.

This trend can only bring cheer, given that Ukraine has always had the potential to supply quality grain on all world markets. Moreover, this breakthrough could open other agricultural commodity markets for the country as well.

In addition, experts are saying that our suppliers are offering grain for prices that are significantly lower than the world average. The price gap has been as much as US $20 per tonne.

Still, the basic problems facing the farm sector in Ukraine continue to be an overly low domestic price for grain. Unless it is adjusted, the nation’s farmers will have a difficult time getting out of the current crisis in the nearest period.

Tags: grain export