Russia offers to Kazakhstan and Ukraine to coordinate activities on the world market of grains

June 17. AgriMarket

Russia offers to Ukraine and Kazakhstan to provide the joint coordinated policy of expansion on the world market of grains, declared Elena Skrynnik, the Minister of Agriculture of the Russian Federation, on June 7.

According to E.Skrynnik, foundation of the pool of exporters in the Black Sea region will allow to decrease the volatility of prices on the world market of grains and the dependence on speculative factors, found the mechanism of common international controlling of grain reserves, which will become the first step to the formation of the global fund of grains, and optimize investments for creation of necessary grain infrastructure, oriented on grain supplies both to the countries-participants and the export market.

Such pool will provide the stable foundation for long-term competitiveness of grains from the Black Sea region, marked the head of the Ministry. Russia also will provide the “infrastructural corridor” on the base of the United grain company, which will allow uniting grain export capacities of the Russian Federation, Ukraine and Kazakhstan.

According to E.Skrynnik, the grain pool will offer to importers the products, which corresponds to their individual requirements.

During 5 recent years, the global market volumes of grain trading increased by over 8% and totaled 230 mln tons in 2008, reminded E.Skrynnik. At the same time, the market volumes of wheat trading total 130 mln tons. The export volumes of wheat from Russia, Ukraine and Kazakhstan total 24% from the world wheat trading. The current leader, the USA, operates with 20% only.

Beginning from 2000, the general share of wheat trading of Russia, Ukraine and Kazakhstan on the world market increased from 6% to 24%. Russia reached the maximum growth – from 1% to 14%, the share of Ukraine increased from 1% to 5%, Kazakhstan – from 4% to 5%.

In the nearest 10-15 years, Russia will increase grain exports to 40-50 mln tons and increase own share on the world market to 20%, marked E.Skrynnik.