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Ukraine: Ukraine Agriculture Profile 2012

2012/04/05

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Ukraine Agriculture Profile 2012

Reference Date: 28-May-2011

 


FOOD SECURITY SNAPSHOT

  1. Crop prospects are favourable for cereal production in 2011

  2. Cereal exports to decline in 2010/11 marketing year (July/June)

  3. Food prices increasing in recent months

Crop prospects are favourable for cereal production in 2011

Favourable rains in May improved growing conditions for the winter and recently planted spring crops. Overall good weather conditions since the beginning of the season have benefit the 2011 cereal crops and production is expected to recover from the reduced level of last year which was affected by dry weather during summer. Early forecasts indicate a 2011 aggregate cereal production (winter and spring crops) of 44 million tonnes, including 20.2 million tonnes of wheat.

Cereal export to decline in 2010/11 marketing year (July/June)

The introduction of export quotas since the autumn of 2010 has slowed down exports during the 2010/11 marketing year (July/June), which are forecast at around 11.4 million tonnes, a decline of about 44 percent compared with the previous marketing year. The export quotas have been removed in April 2011 for maize. Grain export quotas have been replaced with export duties: wheat: 9 percent; barley: 14 percent; maize: 12 percent. The duties will be effective from June to December 2011.

Food prices increasing in recent months

Official information indicates that from December 2010 until end-April 2011, wholesale prices of wheat and wheat flour increased by 14 and 10 percent respectively. The increases in wholesale prices are pushing up retail prices of bread and wheat flour. The food price inflation in the same period has been 5 percent, slightly higher than the overall inflation in the country. The government is releasing state reserves of grain to stabilize bread prices.

The rich black soils of the country, called chernozem, and its moderate climate provide a variety of crops. Most farms in the country  were government owned and operated till the late 20th century, and include state farms and collective farms.Since the 21st century, however, most of these farms gradually transformed into private ownerships, ranging from those owned by large farm corporations, to the co-operative farms, and also privately owned farms.The country has come to be known as the breadbasket of Europe due to its agricultural production.  

Tobacco and fruits, especially grapes, are grown in the northwest. Farmers often grow fruits and vegetables near cities, to sell at the urban markets. Cotton is grown in the southern part of the Crimean Peninsula. Cattle and pigs are raised in the central and western parts of Ukraine.The country  is a dominant  producer of sugar beets, sunflowers, and such grains as wheat and barley. These crops are raised throughout most of the country. Potatoes are grown mainly in northern of the country .