Ukraine Retained the Position of a Large Exporter of Agricultural Products in 2017

According to the Ministry of Agrarian Policy and Food of Ukraine, the export of agrarian and food products in 2017 increased by 16.3% and amounted to $ 17.9 billion. This was 44.86% of total exports in 2017. Such a result was achieved despite a slight decline in yields in 2017 (the harvest of grain and leguminous crops in Ukraine declined to 61.28 million tons, which is 7% lower than in 2016). Taking into account the price dynamics on foreign markets and yield forecasts, the agrarian sector will remain the key source of currency in Ukraine in 2018.

 

The main crops of agrarian exports, which provided foreign exchange earnings of more than $ 1 billion, are sunflower oil, corn, wheat and a mixture of wheat and rye and soy. The share of these crops in the total exports of agrarian and food products was 23.95%, 16.64%, 15.36% and 5.90% respectively.

The price dynamic on international market for raw agricultural products was mixed. In 2017, world prices for corn (by 1.75%), wheat (by 18.13%) and soybeans (by 1.69%) rose compared with 2016. At the same time, the world market price for sunflower oil in 2017 fell by 6.51%. However, during this period, there was a decrease in the yield of these crops by an average of 11.1% compared with 2016.

In 2017, Ukrainian agricultural products were delivered to Asia, Europe and Africa. In particular, the main importing countries of sunflower oil were (with the corresponding shares in foreign exchange earnings for this product group) India (36.07%), China (10.26%), Spain (9.73%), the Netherlands (8 , 52%). Corn was exported from Ukraine mainly to the Netherlands (14.24%), Egypt (13.96%), Spain (11.22%) and China (11.05%). The main consumers of wheat and the mixture of wheat and rye were Egypt (16.46%), Indonesia (11.99%), Bangladesh (11.08%) and India (10.09%). Soybeans were mainly exported to Turkey (27.12%), Iran (17.59%), Egypt (14.30%) and the Netherlands (7.12%).

India, the Netherlands, Egypt, Spain and China have imported Ukrainian agrarian and food products for more than $ 1 billion each.

In 2018, world price are expected to increase for corn (by 8.38%), wheat (by 23.54%), soybean (by 3.62%) and at the same time decrease for sunflower oil (by 0.82%).

Moreover, a good grain harvest is expected in Ukraine in 2018. Therefore, taking into account the sensitivity of domestic agricultural exports to changes in world prices for it and the projected economic growth in major importing countries, Ukraine should also expect an increase in foreign exchange earnings from exports of major agricultural crops this year.