Russia has been the world’s top grain exporter for the past three years, but as the agricultural marketing year ended on June 30, it looks like Ukraine has snatched the title from its rival.
Thanks to a bumper grain harvest of 70 million tonnes, Ukraine was able to boost its exports to just below its official target and sold 49.7 million tonnes to other countries. The Ministry of Agrarian Policy and Food had predicted that exports would reach 50 million tonnes this year.
This should propel Russia to the top spot, although Russia is also on track for a good harvest this year, which is expected to reach 118 million tonnes. Although final Russian export figures for this agricultural marketing year have not been released, the official export forecast was only 46-48 million tonnes this year and the harvest will be slightly lower than last year. ‘last year.
Rivalry aside, grains have become an important source of hard currency for both countries and exports this year are worth around $20 billion for each country. The grain surplus also serves as the basis for the development of livestock enterprises, which are growing rapidly in both countries.
Grain exports from Ukraine increased by 26% year-on-year. Maize exports from Ukraine jumped 62% to 29.8 million tonnes. Wheat fell 9% to 15.6 million tonnes. Barley fell 18.6% to 3.6 million tonnes, reports UBJ.
Russia continues to favor the sector to boost its development. Last week, the government announced that it was extending the duration of the zero rate on wheat exports until July 1, 2021. According to a decree published on the official government website: “The decision will facilitate the export of products from the agro-industrial sector. The zero export duty on wheat, introduced in Russia three years ago, was valid until July 1, 2018 with a later extension until July 1, 2019.
In his recent Direct Line Q&A session, President Vladimir Putin said Russian agricultural exports are set to double to $45 billion over the next five years. Additionally, Putin has ordered Russia to develop a brand of non-GMO “green” cereals to market internationally.
In 2016, Russia became the world leader in wheat exports. The country’s share of the world wheat market has quadrupled since the early 2000s. Overall, Russian agricultural production has jumped 20% over the past five years.
