World Grain - September 2016 - 83

FEATURE: BLACK SEA READY TO GROW CROP PRODUCTION

quality ratio makes Russia the best choice
for consumers."
Russia produces high quality wheat, he
said, with very little being used for feed.
Test weights average between 77-81 kg/
hL, and this season are in the 80-83 kg/
hL range. Dry protein content ranges from
12% to 15.5%, with more coming in on
the higher side.
The nation's overall grain production
(wheat, barley and corn) has grown 70%
in the last 10 years to 94.5 million tonnes.
Exports have had their ups and downs
because of export bans, but overall in
the last 10 years exports have doubled to
around 33 million tonnes, Kryukovskiy
said. Corn exports grew from nearly zero
in 2005 to 3 million tonnes in 2015. Key
export destinations include countries in
the Middle East and Africa.
For 2016-17, total crop production is
estimated at 110 million tonnes, with wheat
accounting for about 66 million tonnes.

Farmers in both nations have enough
storage to hold their crops until prices
reach a desired level. Ukraine has 785
RI¿FLDOO\ UHJLVWHUHG HOHYDWRUV ZLWK 
million tonnes of storage capacity, but
it has a 60-million-tonne crop. Farmers,
however, can hold everything they
produce, Saenko said.
"He can sell as little as he has to if he
doesn't like the price," he said. "They will
be holding their grain."
It's the same in Russia, where about
70% of farmers have their own storage
whether it's in elevators, warehouses or
plastic sleeves. Last year, farmers were
spoiled by a huge currency devaluation
that meant grain prices locally were going
up on a daily basis, Kryukovskiy said.
Interior infrastructure in both nations
might pose a challenge to exports in the
future. Russia's grain storage is increasing
and it has seen new ports, but the delivery
system to the port remains the same as it did

10 years ago, Kryukovskiy said. Still, he
said the lack of improvements won't limit
exports because there is enough capacity.
In Ukraine, port terminal developments
are massive, and by some estimates may
increase by another 20 million tonnes in
the next few years, Saenko said. But the
infrastructure needed to deliver grains to
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year, truck weights are limited, increasing
costs, he said. One bright spot are the two
Ukrainian rivers that may be used to move
grain by barge to the ports. Nibulon, a port
operator based in Ukraine, has told the
government it will dredge the rivers and is
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³,IWKH\JHWWKHSHUPLWVWKHÀRRGJDWHV
will open," Saenko said. "They can bring
the grain from up north. It will drop the
cost of transportation enormously."
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