Ukraine significantly expanded the geography of flour exports

During several recent seasons, the supplies to North Korea provided the major share of the growth of Ukrainian flour exports, but in 2015/16 MY the geography of foreign markets for the product markets significantly expanded, declared the Adviser to the Chairman at Agrarian Fund PJSC, Sergei Sakirkin during his report at the second international conference "Grain Processors Forum: Market & Technologies - 2016" on September 22.

In particular, the share of Asia in the export structure increased from 41% to 48%. Also, Africa is quite prospective market for Ukrainian flour, he said. According to the expert, previously China was the major "technical" importer, and actually re-exporter, of Ukrainian flour, but in 2015/16 MY the United Kingdom took the position (23.5% of the supplies).

At the same time, in 2015/16 MY North Korea (166.7 thsd tonnes) still remained the major consumer of Ukrainian flour, as well as Moldova (32.7 thsd tonnes) and Israel (32.6 thsd tonnes). Agrarian Fund does not forecast any further development of exports to the European Union, because EU consumers are not interested in Ukrainian flour. Supplying of bakery mixtures is the single prospective market segment for exports to Europe, informed S.Sakirkin.

Also, he stressed that to date Ukraine already reached the maximum possible level of flour shipments in terms of logistics. There is no company on the market which can supply even larger volumes of flour products and deliver them to the port. Ukraine already reached the maximum level of 30 thsd tonnes per month, the expert said.

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