Triumph of the Black Sea region: for how long?
The Black Sea region has been enhancing its presence in the world grain market since as early as the late 1990’s. However, the region’s role became particularly noticeable over the last few years. The Black Sea share in global exports holds at over 20% since 2013/14, making it possible to safely call this a triumph of the Black Sea region on the world grain floor. Moreover, the global grain trade upturn is in many respects promoted by the Black Sea region, especially in the past marketing year of 2016/17, UkrAgroConsult’s experts note.
What reasons are behind that vast build-up of exportable surpluses? Over the previous four years, the Black Sea region has increased grain production to 200 MMT that is 10% of the world’s output of the three staple crops. The greatest contribution was made by Russia, but the Ukrainian and Kazakh harvests hit record highs, too.
In turn, the rise in production was achieved through a steady increase in yields of all cereals.