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Ukraine – A Major Grain Producer

Agri Trade HighlightsStock ManagementDecember 18, 2020

Ukraine accounts for about 16% of global grain exports.

It is the sixth largest producer of corn, the seventh largest producer of wheat, and the world's largest grower of sunflowers. It is also among the top ten producers for sugar beet, barley, soya and rapeseed. In such a vibrant market, it is important for foreign and domestic trade operatives to employ a good stock management service to mitigate risks in the supply chain.

Market Issues

Ukraine exported 57.2 million metric tonnes (mmt) of grain in the 2019/20 season, but the government is predicting an 11.6% decrease in the 2020/21 season, to 47.4 mmt. As a result of poor weather during the last growing season – the annual grain harvest has decreased from 75.1 mmt to approximately 68 mmt.

Existing regional tensions, supply defaults by local traders, and inefficient warehouse receipt processes have led to a reduction in confidence among the finance Industry reducing the availability of currency loans and other instruments.

At the same time, a paradigm shift is about to impact the market as, from 2024, new State Land Reform Policy means agricultural land can be made available for sale to individuals and legal entities. This is supported by USD 200 million in loans from the World Bank, with the intention that it will create a fair and transparent market for farmland in the future. It is estimated that opening the market and improving productivity and transparency in the sector, will lead to annual GDP growth for the country of over two percent.

Stock Operations in Ukraine

SGS began offering stock monitoring service (SMA and CMA) in Ukraine in 2007. With a head office in Odessa and branch offices across the country. Our inspectors are ideally situated to provide comprehensive, professional stock monitoring services to stakeholders in any part of the supply chain.

Services include daily monitoring to our client's requirements and spot inspections (requested on demand). In addition, we offer volume assessment at specific locations and services to support stock transfer monitoring agreements (STMAs). We deliver independent accurate, timely and efficient monitoring services to our client's exacting requirements.

Global Stock Management Support from Ukraine

Viktoria Zalipyatskaya and Kateryna Korshykova, two local experts with considerable experience in domestic and international agricultural trade, are now providing stock management support to operators all over the world. Whatever the problem – high cargo temperatures, insect infestations, torrential rains, uncollected spillages, negligent cargo handling, poor stacking, cargo mixing, etc. – and wherever it occurs in the world, they have the experience and flexibility to work with the client to ensure losses are minimized and that successful outcomes are achieved.

They use value-added reporting systems to provide clients with a consolidated cargo flow – from intake to full release. This is achieved with the use of a forward-thinking cloud based application that registers all relevant data pertaining to every vessel, giving the client sophisticated information relating to the progress of their cargo along the supply chain.

For inquiries, please contact:

Viktoria Zalipyatskaya & Kateryna Korshykova
Operations Coordinators
t: +38 048 786 96 00

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