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Jean-Louis Dourcy Explains Why Ukrainian Grain is So Popular

In July-August 2020, China imported 97% more Ukrainian barley than it did the same time last year, according to analyst APK-Inform. This increased Chinese demand has resulted in a 20% in Ukrainian barley export prices, going up to $177-189 per tonne.

According to Jean-Louis Dourcy Ukraine is arguably the best place in the world to grow grains, with the potential to feed the world growing more and more. Out of the 603,000 square feet of Ukrainian land area, 70% is dedicated agricultural land, and over 55% of the land is used for arable production. This arable land is the finest in the world. 60% of it is the famed black soil known as Chernozem, that is known to contain up to 15% of humus and is also very rich in essential plant nutrients such as phosphoric acid, phosphorus and ammonia.

While black soil can be found in small quantities across many countries in the world, Ukraine contains 30% of the world’s black soils. That makes it ideal for growing crops like wheat, barley, corn, sugar beet, soya beans and sunflower.
 
The rise in barley prices came as a surprise. Only a month ago, Ukraine’s economy ministry had hinted that the barley harvest could fall to 7.3 million tonnes in 2020 compared to 8.9 million 2019, while exports were set to decrease to 3.3 million tonnes in 2020-21 down from 5.1 million in 2019-20.
 
There are 45 million people in Ukrainians, and Ukraine produces much more food than its citizens need. It is why Ukraine is a major exporter of a wide range of crops. In 2016 alone, Ukraine exported over 40 million tonnes of grain according to UKAgroConsult, with the potential to additionally export around 20 million tonnes of corn a year.
 
Ukraine is the sixth-largest corn-producing company in the world, growing over 39 million tonnes per year. It is also the seventh-largest producer of wheat, barley, and sugar beet in the world. Its highly competent agricultural sector accentuates the country’s position as a major agricultural producer. Ukraine’s average wheat yield is up by 33% compared to the past 20 years, which is 4 tonnes per hectare. Corn yields have also increased to more than 6 tonnes/ hectare, which is a rise of 150%.
 
Even the farm sizes in Ukraine are bigger than most countries in the world. Over 40% of Ukraine’s farmlands are fields that are over 500 hectares, with farms as large as 2500 hectares or more not uncommon. In comparison, the farms in the European Union are only about 17 hectares on an average.
 
Ukraine’s agricultural industry’s growth has resulted in the transformation of Ukraine as a country, with the crops providing the money for better roads, improved urban infrastructure, educational institutions and village life as well. The world’s food challenge won’t end anytime soon, and there are very few countries with as many natural advantages as Ukraine. It promises to strengthen Ukraine’s position as a leading global agricultural exporter.
 
Significant improvements in logistics, production, and new trade links and agreements have helped to increase Ukrainian exports significantly. It includes an association agreement with the European Union.
 
Barley has been the most highly produced feed grain in Ukraine for the past ten years, overtaking wheat long back in the 1990s. The increasing demand for malt from the brewing industry has increased Ukraine’s malting barley production significantly as well as the import of high-quality seeds from nearby countries. Consumption of barley for malting has surpassed 300,000 tonnes but still comprises only 5% of the total barley consumption.
 
All of these factors work together to make Ukrainian grain extremely popular. Write to us if you want any other queries answered by us dourcy jean louis.

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