Chinese state-owned company began a program of purchasing grain from the State Food and Grain Corporation of Ukraine (GPZKU) for delivery to customers in China, the Middle East and more distant markets. Igor Jakubowicz, head GPZKU, reported that the first delivery in a deal with China consisted of 75 thousand tons of wheat to Egypt and Syria, and that the additional shipping 25 tonnes planned to be implemented in the Mediterranean area.
Recall, according to the deal, concluded last year with China, GPZKU received a USD 1.5 billion loan for the financing of agriculture in Ukraine. In accordance with the terms of the loan, GPZKU export their grain through the Chinese operator China National Machinery Complete Industry Engineering Corporation.
For Chinese means GPZKU plans to buy 4 million tons of grain harvest in 2013, and export 2 million tonnes by the end of the year. Purchase of grain from farmers to begin in July. GPZKU plans to start exporting as soon as the grain of the new harvest will appear on the market — wheat in July and August, and then the corn. In the supply of grain will dominate corn, but the proportion of sales will depend on the market situation.
GPZKU already purchased 550 tonnes of maize and 50 tons of wheat under forward contracts. The remaining 3.4 million tons of grain, most likely, will be purchased on the spot market.
Ukraine has fulfilled all the requirements to corn to China's domestic market, and will also supply wheat, barley, soybeans and other commodities, as soon as get permission from the Chinese side.
In addition, GPZKU, which has two large export grain terminals, 24 elevators and 17 Flour mills, plans to increase the export of flour in 2013/14.
Export 50 thousand tons a real prospect for this year. Can be delivered in Syria, Libya, Egypt — the head GPZKU.
In the future GPZKU could become a major exporter of Ukrainian flour annually supplying the foreign market of 100 thousand tons