Grain-Ring or Competitive struggle in Ukraine’s market


Despite a growing volume of output, competition among traders is still rather tough. While the list of exporters contained some 350 companies in the 2011/12 season, their number was over 1500 at the end of MY 2016/17. Thus, with a double increase in grain exports at the time, the quantity of interested companies has risen fourfold (!).

The number of Ukrainian and international grain trading corporations annually increases. They are joined both by international traders which have not operated in Ukraine before and by entities which have long operated in foreign markets, though in related non-agricultural segments.

Thus, a new solvent buyer is coming to the market, consequently intensifying competition for domestic grain purchases. At the same time, as a reminder, the global price upturn, if any, is extremely slow. Traders optimize their costs as much as possible, but not by reducing grain purchase prices, reports UkrAgroConsult.

Apart from the price, the methods of competitive struggle for physical volumes can be very diverse, and as a result, the starry cast of market leaders is changing.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain” and “Online market review” by UkrAgroConsult.




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