Ukraine’s Cabinet decided to indefinitely postpone consideration of 25 restrictions on food exports, which for the current popular international food markets is nothing more than a summer “refreshment.” Market analysts believe that the restrictions on grain exports in Ukraine, the issue of guidelines instead of hair, both internally and external pressure, the global food market problems do not appear continuously but the recent global food crisis.

Ukraine is expected to limit food exports push up international food prices

17 this month, Ukrainian Minister of Agriculture Preciado day nyuk, said the drought weather, Ukraine grain production, the government plans to limit food exports before the end of this year to protect domestic food security. He said that Ukraine will be the 18th meeting of the Cabinet considered to determine the export quota system on food, planned before the end of year only to allow exports of 2.5 million tons of grain, corn exports and is already in the port for shipment of 100 tons of food are not included in the the quota. Before this, the world’s other major exporter of grain Russia has decided to ban food exports before the end of this year, Ukraine intended to limit grain exports once again pushed the news of the international market price of wheat.

Ukraine plans to limit food exports in the news came out, in Ukraine and a number of grain merchants Farmers Union organization has continually issued an open letter calling on the Government or not to restrict grain exports, or substantially increase the export quota. The letter said, according to the Ministry of Agriculture standards for quota restrictions on grain exports, will lead to domestic food surplus and farmers suffer losses in revenue, Ukraine will occur from 8 million to 9 million tons of grain storage nowhere.

Ukraine grain export restrictions to protect themselves higher

Ukraine was the world’s food production and export country in 2009, grain output was 46,000,000 tons, the export volume of more than 21 million tons, and Russia is the world’s third largest food exporter. Of these, 9.3 million tons of wheat exports, accounting for sixth in the world; barley export 6.2 million tons, accounting for the world.

Ukraine Ministry of Agriculture had previously forecast the country’s grain output this year from 40 million to 42 million tons. As of August 16, Ukraine had harvested 28.7 million tons of grain. At present, the corn harvest has just entered, is expected to yield more than 11.5 million tons. Therefore, Ukraine’s total grain output this year, more than 40 million tons almost certain.

Analysts believe that the reason why Ukraine news release in limiting the grain There are three main considerations: First, the current is the acquisition of Ukraine’s food reserve official for the season, while international prices have driven up domestic grain prices continue to move up the Ukraine. As food exporters to pay higher prices, food manufacturers are more willing to sell grain exporters, grain reserves, the government allocated limited funds, the government blocked food acquisition, it is necessary to temporarily restrict grain exports. Second, because of the drought weather, Ukraine’s grain output over the previous year have certain cuts, it is the Government plans to limit food exports objective reasons. Third, the bread is the main food for the residents of Ukraine, the Ukrainian domestic wheat prices higher inflation is very large, but also directly affect the lives of poor, limited food exports would help keep the domestic food price stability.

United Nations officials said the recent global food crisis will not be

Around the world grain market, while Russia, Ukraine and Kazakhstan this year’s grain harvest, but the United States, Canada, Argentina and other countries of the grain harvest enough to offset these negative factors, Food and Agriculture Organization officials responsible for trade and market Aba Xi’an recent interview with reporters, also said the recent global food crisis is not a new one.

Abassian that the drought in Russia as well as international market expectations of higher future prices push wheat prices is an important reason. As one of major exporters, Russia announced on August 15 this year to the period from December 31 to stop its exports of wheat, this decision a blow to the global market, driving the global wheat prices reached a peak since 2008. The wheat exporter, Ukraine and Kazakhstan this year’s production is also expected to decline, the EU and other major wheat-growing countries are also experiencing their own problems, have heightened market fears.

However, Abassian that the world food crisis is not at the edge. From the supply side that faced Russia despite difficulties, but plenty of other wheat exporting countries to stop exporting the Russian stock sufficient to cover the vacancy caused by it in 2007 to 2008, different conditions during the food crisis. In addition, higher prices of the problem only exists in the wheat market, rice and corn market has not yet been affected.

From the demand side, said the current situation with the 2007 food crisis in 2008 significantly different. The current global macroeconomic slowdown, oil prices fell to about half of the food crisis level, the global demand for food is not particularly significant growth is expected, so is unlikely to reproduce the current crisis.

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