Ukraine highlights its significance as a grain exporter. As of 2011/2012 MY Ukrainian agricultural manufacturers harvested over 57 MMT of grains including 22 MMT of wheat, 23 MMT of corn and 9 MMT of barley. Ukrainian exports average one fourth of the total output of wheat and barley and more than 60% of corn. The market is relatively concentrated, thus TOP 5 grain exporters stand for a half of the country’s export potential.
Diversification of crops brings profits. Increasing demand for Ukrainian crops in the world has been backed up with an advantageous geographic position, absence of available substitute products and a growing number of potential grain consumers. The grain market is characterized by strong rivalry which pushes big players to take necessary measures to defend their market share. Kernel takes the third place among Ukrainian grain exporters (9% of the overall crop exports). The company prefers to produce wheat, corn and soybeans contributing 30.4%, 15.6% and 16.5% of its cultivated land bank correspondingly among the aforesaid crops. Ukrainian favorable weather conditions provide grounds for further expansion of arable land for soybeans that generate high profitability.
Добавить корн) Table 1: Top 5 Grain Exporters, 2011/12 MY
