Farmers not able to substantially increase grain production in nearest years
2011-04-21 16:31:38
Ukrainian grain producers will not be able to substantially increase grain production, taking into consideration the present situation on the market. This opinion was expressed by Director General of the Ukrainian Grain Confederation (UGC) Serhiy Stoyanov.
One of the reasons is low profitability of grain production. According to the official statistics, cited by the UGC Director General, profitability of grain and leguminous cultures production in 2009 was 7%, in 2010 - 13%. "At the expense of such profitability, grain producers will not be able to develop and reach the level set for us (80 million tons - Ed.)," Stoyanov is convinced.
Another reason is the passive export policy, non-use of the favorable conjuncture of the foreign markets.
In Ukraine, since October 2010, grain quoting was officially introduced as a result of considerable reduction in grain production, caused by unfavorable weather conditions.
Thus, in 2008, grain output was 53 million tons, in 2009 - over 46 million tons, while in 2010, the production index fell to 38 million tons.