The government expects that in the coming years the agricultural sector will continue to be the locomotive of economic development of Ukraine. It is planned that by 2020 the agricultural production will grow by 30%. Also, the crop production will get the biggest development, as its products are the second largest component of Ukrainian exports, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Experts from the Ministry of Agrarian Policy and Food say it is possible to increase the volume of crop production by 50% by 2020. But analysts point out that although the mere increase in crop production is important, it does not guarantee the same farmers' income growth.
In their opinion, it is necessary to implement a set of measures to obtain a positive effect from the implementation of the government's plans to increase the volume of crop production. In particular, it is important to increase the quantity and improve the quality of harvester fleet and significantly reduce the loss of grain during the entire process chain - from the field to loading onto sea-going vessels.
In this regard, one of the key aims is the significant expanding of capacities for loading grain onto the ships, creation of new and expansion of existing transport nodes to ensure the shipment of grain for export during the peak period.
Analysts also point out that in the past few years the global wheat production exceeded its consumption. As a result,world carryover stocks of this grain during several years have been ranging from 25% to 30%. This leads to the fact that its prices on the world markets are subject to great fluctuations. It also intensifies the struggle for market outlets. At the same time, demand for coarse grains, primarily corn, remains stable. Carryover world corn stocks in recent years have been in the range of 15% to 20%.
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