In 2021, several factors will influence significantly on agricultural sector, particularly, grain production, declared the President of the Ukrainian Grain Association, Nikolay Gorbachov.
He expects that saturation of the market with money will result in higher demand for all products, including those of grain sector, as well as high prices of grains and oilseeds. Further growth of population will support this trend, particularly in Southeastern Asia.
“2021 will be the year of turbulence for Ukrainian agriculture, as they have appointed the Minister of Agriculture, but they have not restore the Ministry of Agrarian Policy yet. It will take some time, and it will challenge the agricultural sector, as there will be certain problems (political and financial) for the industry during the delegation of power from one ministry to another”, – he considers.
Moreover, there will be no record crops of wheat and oilseeds, as the areas under wheat and corn are declining. Nonfulfillment of forward contracts by farmers this year will have negative effect as well.
“All international grain buyers are reducing the volumes of forward deals, as the trust in this tool was waved significantly. Overall finances attracted to produce and trade with grains and oilseeds through forward contracts have reached 11-12 bln USD. The investments may decline sizably in 2021. Thus, there will be the lack of money for planting campaign that will result in lower production of grain in Ukraine in coming years”, – N. Gorbachov forecasts.
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