Competition to be the key global challenge over the coming 10-15 years - Sergey Feofilov

25.04.2018

Competition will be the key global challenge over the coming 10-15 years, - stated Sergey Feofilov, Director General, UkrAgroConsult at the XV Anniversary International Conference “Black Sea Grain-2018”, a leading international forum recognized by top grain and oilseed producers and exporters.

Competition intensifies in both production and consumption of grain. According to Sergey Feofilov, “competition in consumption will be no less severe than in production.”

Judging by planted area forecasts presented by the speaker, the Black Sea countries’ competitors in the world grain market are serious. In particular, Ukraine will be able to expand its plantings by at most 0.4-1.1 Ml ha by 2025, with a 3-9 Ml ha increase in Russia. By contrast, Brazil can enlarge soybean plantings alone by 19.4 Ml ha and its corn sown area by 7.5 Ml ha over the same time. In total, this South American country alone may ultimately boost its planted area by up to 55% against MY 2015/2016 over the decade.

In the previous 15 years, the Black Sea countries have achieved success in the world market due to low production costs. In the opinion of the speaker, the Black Sea region’s responses to the global challenge within the next 10-15 years may follow several possible scenarios:

  • intensification of farming;
  • obtaining support from the government;
  • switching to high-margin technology and practices.

A combination of the first and third options would be preferable for Ukraine, but all the three combined would be the best way, Sergey Feofilov says. He believes this would enhance the country’s competitiveness in the global food market to the greatest extent. In particular, Ukraine would get much higher chance to raise yields of wheat, corn and other crops and step up grain production to 80-120 MMT by 2026-2030.

Overall, finding a response to the challenge of the coming decade is a very multifactorial task, and effective processing of multidirectional economic information is becoming a global advantage, the speaker is confident.

XV Anniversary International Conference “Black Sea Grain: Moving Up the Value Chain”  took place on April 18-19, 2018 in InterContinental hotel, Kiev, Ukraine. Organizer – consulting agency UkrAgroConsult, General Sponsor – ACTAVA TRADING, Exclusive Financial Sponsor – Credit Agricole Bank, Exclusive Exchange Sponsor – CME Group, Official Sponsor – Sierentz Global Merchants. Sponsors -  Filhet-Allard Maritime, INTL FCStone, Intertek, Taban Grain, Tradomatic, Rietumu Bank. Supported by GAFTA and Ukrainian Grain Association.

The conference was attended by 700 delegates from 400+ companies and 50 countries. Participants are represented by international producers and crushers of grains and oilseeds, agri holdings, traders, banks and investment funds, shipping, brokerage, insurance, surveying, law and consulting companies etc.

 

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