Ukraine’s Grain Exporters Target Asia for Future Market Growth
Ukrainian grain exporters are betting on Asia as the top market for their booming harvests. Grain exports will likely increase by a third to 60 million metric tons in the next three to five years, according to
Nikolay Gorbachov, president of the Ukrainian Grain Association.
The group plans to target markets in Asia with fast population growth, including China, India, Vietnam and Indonesia. The organization wants to increase grain quality to meet Asian demand, and aims to improve crop protection against fungus and disease, such as ambrosia or mycotoxin. In the past, the Middle East, North Africa and Europe have been the main destinations for Ukrainian grain.
"We have to work more to open new markets around the world," said Gorbachov, speaking before the Black Sea Grain conference in Kiev. "For this, we need to follow international standards. Not only in quality, it’s the standard for storage grain, loading grain for all the logistic chain."
Grain output may reach 90 million tons in the next three to five years, according to Gorbachov, who is also a director of New World Grain Ukraine, part of Soufflet Group. For the new season that starts in July, he expects exports of 40 to 45 million tons. Europe accounts for 30 percent of shipments.
"I don’t expect a big surprise for exports next season," said Gorbachov. The association’s members account for about 80 percent of the Ukraine’s grain exports.