Ukraine and the Iranian corn market: entry is free until June
Following the lifting of sanctions in January 2016, Iran resumed production of crude oil that facilitated the country’s economic growth and the build-up of export revenues. This resulted in the restoration of Iran’s agricultural sector, car manufacturing, foreign trade and transport system throughout 2016. The growing of some crops, in particular wheat, corn, and barley is subsidized by the government in the form of guaranteed prices for which it buys these crops for state reserves.
However, due to climate changes, the country requires increasingly higher imports of grains. This particularly concerns corn, which is susceptible to high temperatures and moisture shortages. According to USDA estimates, Iran harvested 2540 KMT of corn in the season of 2016/17, or as nearly much as in the previous several seasons.
At present current imports of corn by Iran are all-time high. According to UkrAgroConsult’s analysts, Ukraine has an opportunity to increase its presence on this prospective market and ship additional volumes of corn until competitors come.