Grain and Oilseeds

21/ 06/ 2013

Following EBA’s efforts as well as other non–profit organizations, involved in agricultural sector and grain and oilseed market and owing to effective continuous cooperation between the Ministry of Agrarian Policy and Food of Ukraine and key grain market players – grain export businesses concluded the Memorandum of Understanding between the Ministry of Agrarian Policy and Food of Ukraine and economic entities – grain exporters for 2013/2014 marketing year.

Background: For the recent years, Ukrainian grain traders felt the pressure from the government in an effort to regulate the volume of export crops. Thus, the repeated attempts to introduce quotas on grain exports had a negative impact on the work of leading Ukrainian grain producers and traders and affected the country’s reputation as a key grain exporter in the world. But in 2012, thanks to EBA Grain and Oilseed Committee’s and other associations’ cooperation for a proper regulation of export volumes issue and aiming at keeping on positive trend in efiicient cooperation between the Ministry of Agrarian Policy and Food of Ukraine the Memorandum of Understanding between the parties to the grain market and the Ministry of Agriculture Policy and Food of Ukraine was signed. It ensured smooth and transparent grain export operations. It is worth mentioning that the first Memorandum on Cooperation in the grain market was signed between the State and grain trading companies in 2011/2012 marketing year and proved to be an effective tool for implementing both the interests of the state in an attempt to balance grain consumer market and food security and grain trading companies regarding of planning export volumes and setting of transparent rules on the grain market.

Subject to provisions of the Memorandum for 2013/2014 marketing year, the parties agreed on cooperation in the grain market and ensuring mutual interests. Total export volumes will be determined and agreed by the parties before 1 September of the current year and will be put on in the Annex to the Memorandum.

We would like to note that the Memorandum of Understanding has become an effective tool in entering into cooperation between the government and representatives of the grain sector. It has become possible to follow transparent rules in the grain export issue. Market predictability and flexibility are important factors in successful export activities and it is Memorandum that enabled the latter.

We would like to extend our gratitude to the Ministry of Agrarian Policy and Food of Ukraine for their support and effective cooperation with leading grain market players of Ukraine, as well as to share this success with our members who look forward to maintaining permanent and transparent cooperation with the Ministry of Agrarian Policy and Food of Ukraine.

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