Ukraine and the prices of cereal
Our neighbor to the East is the third largest exporter of maize in the world and the sixth biggest exporter of wheat. The current political crisis may influence the prices of those products on the global markets.
A major player
Ukrainian agriculture boasts an impressive export potential. C. 8 million tonnes of maize and c. 4 million tonnes of wheat are sold abroad annually. Before the Russian annexation of Crimea, Ukraine served as the determinant of global wheat and maize prices, thanks to the large farming potential of the country the relatively low manufacturing cost. However, due to recent political turmoil, which rouses fears about the stability of Ukrainian exports, those prices may grow.
In the last quarter of 2013, the prices decreased, which looked promising for poultry, pork and beef manufacturers. But now, with the situation in Russian-Ukrainian relations remaining uncertain, fodder prices are forecast to rise in the coming months, impacting the grocery industry as a result. The negative consequences of the crisis in the East may also be felt by organic cereal consumers, since Ukraine is the main supplier of organic wheat.