Required Report - Public distribution

**Date:** 3/26/2008

**GAIN Report Number:** UP8005

UP8003

**Ukraine**

**Grain and Feed**

**Grain and Feed Annual**

**2008**

**Approved by:**

![](media/image1.wmf)W. Garth Thorburn II, Agricultural Attache

U.S. Embassy, Kyiv

**Prepared by:**

Olena Pereyatenets, Agricultural Specialist

**Report Highlights:**

Grain and pulse production is expected to increase by 20% over the
previous year and will result in an increased export surplus of wheat,
barley and corn. Feed and food consumption is predicted to remain
relatively stable. The export quotas limiting exports of grain are
expected to remain in place through marketing year 2007/2008. The
Government of Ukraine (GOU) is again expected to intervene in the grain
markets during marketing year 2008/2009.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Kiev \[UP1\]

\[UP\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Wheat 3](#wheat)

[Wheat PSD Table 3](#wheat-psd-table)

[Production 3](#__RefHeading___Toc193700403)

[Consumption 4](#consumption)

[Trade 5](#trade)

[Exports 5](#exports)

[Imports 6](#imports)

[Stocks 6](#stocks)

[Barley 7](#barley)

[Production 7](#production-1)

[Barley PSD Table 7](#barley-psd-table)

[Consumption 8](#consumption-1)

[Exports 8](#exports-1)

[Stocks 9](#stocks-1)

[Corn 9](#corn)

[Corn PSD Table 9](#corn-psd-table)

[Production 10](#production-2)

[Consumption 10](#consumption-2)

[Trade 10](#trade-1)

[Stocks 11](#stocks-2)

[Rye 11](#rye)

[Rye PSD Table 11](#rye-psd-table)

[Production 12](#production-3)

[Consumption 12](#consumption-3)

[Trade 12](#trade-2)

[Stocks 12](#stocks-3)

[Oats 12](#oats)

[Oats PSD Table 12](#oats-psd-table)

[Peas 13](#peas)

[Peas PSD Table 13](#peas-psd-table)

[Production 13](#production-4)

[Exports 13](#exports-2)

[Policy (all grains) 14](#policy-all-grains)

[Ports Infrastructure for Grains Export and Transit
15](#port-infrastructure-for-grain-export-and-transit)

[Total Grain Exports by Port (Wheat, Barley, Corn and Peas) in Tons
15](#total-grain-exports-by-port-wheat-barley-corn-and-peas-tons)

[Wheat Export by Ports (tons) 16](#wheat-exports-by-ports-tons)

[Barley Export by Ports (tons) 16](#barley-exports-by-ports-tons)

[Corn Export by Ports (tons) 17](#corn-exports-by-ports-tons)

[Peas Export by Ports (tons) 17](#peas-exports-by-ports-tons)

[Transit of Grains by Origin (tons)
18](#transit-of-grains-by-origin-tons)

[Transit of Grains by Origin (tons) 2006/2007 MY
18](#transit-of-grains-by-origin-tons-my-20062007)

[Transit of Grains by Origin (tons) 2007/2008 -- July 2007-Febryuary
2008 MY
19](#transit-of-grains-by-origin-tons-20072008-july-2007-febryuary-2008-my)

[Statistical Tables 19](#statistical-tables)

[Final Statistics on Grain and Pulse Production in Ukraine (2007)
19](#final-statistics-on-grain-and-pulse-production-in-ukraine-2007)

[Historical Sown Areas on Wheat, Barley and Corn and Trend Lines
20](#historical-sown-areas-on-wheat-barley-and-corn-and-trend-lines)

[Wheat Exports by Country, Year-to Year Comparison (1,000 MT)
20](#wheat-exports-by-country-year-to-year-comparison-1000-mt)

[Monthly Wheat Exports by Destination (July 2006- February 2007), 1,000
MT
21](#monthly-wheat-exports-by-destination-july-2006--february-2007-1000-mt)

[Barley Exports by Country, Year-to Year Comparison (1,000 MT)
22](#barley-exports-by-country-year-to-year-comparison-1000-mt)

[Monthly Barley Exports by Destination (July 2006- February 2007), 1,000
MT
22](#monthly-barley-exports-by-destination-july-2006--february-2007-1000-mt)

[Corn Exports by Country, Year-to Year Comparison (1,000 MT)
23](#corn-exports-by-country-year-to-year-comparison-1000-mt)

[Peas Exports by Country, Year-to Year Comparison (1,000 MT)
23](#peas-exports-by-country-year-to-year-comparison-1000-mt)

# Executive Summary

Grain and pulse (wheat, barley, corn, rye, oats and peas) production in
Ukraine are expected to increase by about 20%. The increase in grain
production will be propelled by a 36% increase in wheat production. If
the government decides not to implement new export quotas on grains for
marketing year 2008/2009, then the increase in production will result in
higher exports (wheat, barley and corn). Consumption of grains for feed
and food is expected to increase slightly due to increase of poultry
inventories.

The Government of Ukraine (GOU) can intervene in the grains market in
marketing year 2008/2009 by:

-   Purchasing wheat (mainly milling wheat) through the Agrarian
    Fund**;**

-   Monitoring and possibly controlling the volume of grain exports
    during the first quarter of the marketing year (July-September);

-   Monitoring and regulating grain prices during the beginning of the
    marketing year, especially for wheat and barley.

Most grain experts expect the GOU will continue to intervene in the
grain market for several reasons. First, the presidential elections will
take place in 2009 and grain is always a political issue. Second,
candidates always use prices for sensitive items like meat and bread as
political issues so there will be an attempt to lower prices for these
commodities leading up to the election. Third, GOU is strongly convinced
that by keeping grain prices lower, they will be able to insure stable
meat and bread prices and put downward pressure on inflation.

# Wheat

## Wheat PSD Table

  --------------------------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------
  []{#__RefHeading___Toc193700403                                                                                                         
  .anchor}**Ukraine**                                                                                                                     

  **Wheat**                                                                                                                               

                                    2006       Revised                2007       Estimate               2008       Forecast               UOM

                                    USDA\      Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\        
                                    Official   Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                                          New                               New                               New         

  **Market Year Begin**                        07/2006    07/2006                07/2007    07/2007                07/2008    07/2008     MM/YYYY

  Area Harvested                    5500       5511       5511        6000       5940       5951        0          0          6700        (1000 HA)

  Beginning Stocks                  2414       2414       2414        1428       2071       1161        1478       2408       2108        (1000 MT)

  Production                        14000      13947      13497       13900      17227      13937       0          0          19000       (1000 MT)

  MY Imports                        80         10         80          350        10         10          0          0          10          (1000 MT)

  TY Imports                        80         10         80          350        10         10          0          0          10          (1000 MT)

  TY Imp. from U.S.                 0          0          0           0          0          0           0          0          0           (1000 MT)

  Total Supply                      16494      16371      15991       15678      19308      15108       1478       2408       21118       (1000 MT)

  MY Exports                        3366       2800       3330        1500       5000       500         0          0          5000        (1000 MT)

  TY Exports                        3366       2800       3330        1500       5000       500         0          0          5000        (1000 MT)

  Feed Consumption                  2100       2100       2100        3100       2500       3100        0          0          3600        (1000 MT)

  FSI Consumption                   9600       9400       9400        9600       9400       9400        0          0          9700        (1000 MT)

  Total Consumption                 11700      11500      11500       12700      11900      12500       0          0          13300       (1000 MT)

  Ending Stocks                     1428       2071       1161        1478       2408       2108        0          0          2818        (1000 MT)

  Total Distribution                16494      16371      15991       15678      19308      15108       0          0          21118       (1000 MT)

  Yield                             2.54       2.530      2.45        2.32       2.90       2.34        0          0          2.84        (MT/HA)
  --------------------------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

#  

# 

# Production

In 2008, wheat production is expected to increase by nearly 36%, over
the previous year. The expected good harvest will be a result of the 10%
increase in the winter wheat sown area (0.7 million hectares), minimal
winter-kill losses due to the mild winter, lower then expected frosts
and higher than average yield expectations.

Winter weather conditions in December 2007 through February 2008 were
exceptionally mild. The average temperatures from September 2007 through
mid February 2008 were 2 degrees higher then the historical average.

Temperatures in January and February were also abnormally high**.** The
average nighttime temperature ranged between +2 degrees to --5 degrees
Celsius. The average daily temperature ranged between +5 degrees to -2
degrees Celsius. Only once in three months did the temperature drop to
--10 to -15 degrees Celsius resulting in a frost during the night. The
frost caused minimum damage to the crops due to sufficient snow cover
(from 2 to 5 centimeters) during those days. The estimated losses in the
winter wheat sown areas are expected to be about 5%.

According to the Ukrainian Meteorological Center, 90% of the winter crop
is categorized as "good" or "satisfactory". Only 10% is categorized as
"weak" as of February 2008. These indicators are good when compared to
the past four years (the comparisons were taken between February 15
through 20):

February 2008 -- 90% is in good or satisfactory condition. 10% is weak;

February 2007 -- 91% is in good or satisfactory condition. 8% is weak;

February 2006 -- 70% is in good or satisfactory condition. 30% is weak;

February 2005 -- 89% is in good or satisfactory condition. 11% is weak;

February 2004 -- 98% is in good or satisfactory condition. 2% is weak;

# Consumption

## 

Increased wheat production in 2008 will result in slightly higher wheat
consumption when compared to marketing year 2007/2008.

The charts below clearly show the strong upward trend in compound feed
production. The increases began during marketing year 2001/2002 and
production continues to increase by an average of 30% per year. Compound
feed production in July-November 2008 increased 24% over the same period
last year.

Flour production has been on a downward trend for the past two years due
to the close linkage between flour production and the wheat harvest, and
the government's control over bread prices.

Flour production increased 8% in marketing year 2007/2008. This means
the industry's consumption of wheat will remain relatively stable for
marketing years 2007/2008 and 2008/2009.

The increase in consumption of feed wheat is probable due to expansion
of poultry production. Monthly poultry inventories increased by 1-5% in
2007.

**Increase in Compound Feed Production**

![](media/image2.wmf){width="5.066666666666666in"
height="2.277083333333333in"}

######### Source: State Statistics Committee of Ukraine

*07/08 -- FAS Kyiv Estimation*

**Decrease in Flour Production**

![](media/image3.wmf){width="5.225in" height="2.277083333333333in"}

*Source: State Statistic Committee of Ukraine*

*07/08 -- FAS Kyiv-estimation*

## 

# Trade

## Exports

A surplus of exportable wheat is forecasted from July 2008 through June
2009. Total exports should reach 5 million tons due to the estimated
increase in the wheat crop by approximately 5.0 million tons over last
year. This forecast assumes GOU will not reintroduce export quotas on
grains for marketing year 2008/2009.

Demand for higher quality Ukrainian milling wheat will increase in
African, Middle Eastern and Asian markets. Exports of feed quality wheat
will increase in the traditional markets like Spain, Italy and Israel.
The table below provides a forecast of wheat exports by region for the
next marketing year.

Wheat export quotas remain in place as of the drafting of this report.

**Possible Destinations for Ukrainian Wheat Exports for MY 2008/2009**

  ------------------ ---------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
  **Destinations**   **July 05- **July 06-  **July 07 -  **July 08 -  **05/06,   **06/07    **07/08,     **July 08 -
                     June 06**  Jun07**     June 08      June 09      Share**    Share**    Share,       June 09
                                            Forecast**   Forecast**                         Forecast**   Forecast**

  North Africa       1500       699         63           1300         23%        21%        13%          26%

  Other Africa       440        184         88           400          7%         6%         18%          8%

  EU - 25            1329       611         60           1100         21%        18%        12%          22%

  South-East Asia    1344       254         50           1100         21%        8%         10%          22%

  Middle East        1291       682         97           900          20%        20%        19%          18%

  South America      94         0           0            0            1%         0%         0%           0%

  Other Countries    463        901         141          200          7%         27%        28%          4%

  **Total**          **6461**   **3,330**   **500**      **5000**     **100%**   **100%**   **100%**     **100%**
  ------------------ ---------- ----------- ------------ ------------ ---------- ---------- ------------ ------------

*Source: State Statistics Committee of Ukraine*

07/08, 08/09 -- FAS Kyiv Estimate

## Imports

Wheat imports for marketing year 2008/2009 will likely remain low,
especially due to the expected increase in production of the wheat crop
this year.

# Stocks

Marketing year 2008/2009 ending stocks will be higher than in marketing
year 2007/2008 due to the increased wheat supply and unclear government
policies (the possibility of new export quotas). Information on monthly
wheat stocks held by farmers, elevators and processors is provided
below. (Please note: the stock information provided below does not
account for wheat stored by small farms and private households which
accounted for 18% of all wheat produced in Ukraine in 2005, 2006 and
2007.)

![](media/image4.wmf){width="6.492361111111111in" height="3.125in"}

######### Source: State Statistics Committee of Ukraine for Stocks and APK-Inform for Prices

*January and February 2007 -- FAS Kyiv Estimation*

# Barley

## Production

Barley production is forecasted to increase 50% over the previous year.
Winter barley area (which represents 10-15% of total barley production)
increased by 28% over the previous year. Winter barley yields are
expected to be historically high due to the mild winter weather.
Conversely, the area planted with spring barley is expected to decrease
by 19% due to the high sown area of winter crops. Another reason for the
lower spring barley area is the switch by farmers to crops with higher
profitability like sunflower, rapeseeds and soybeans.

## Barley PSD Table

  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------
  **Ukraine**                                                                                                          

  **Barley**                                                                                                           

                 2006       Revised                2007       Estimate               2008       Forecast               UOM

                 USDA\      Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\        
                 Official   Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                       New                               New                               New         

  **Market Year             07/2006    07/2006                07/2007    07/2007                07/2008    07/2008     MM/YYYY
  Begin**                                                                                                              

  Area Harvested 5200       5236       5236        4400       4833       4079        0          0          4200        (1000 HA)

  Beginning      1193       1212       1193        960        972        950         480        862        250         (1000 MT)
  Stocks                                                                                                               

  Production     11350      11340      11340       6000       10970      5980        0          0          9000        (1000 MT)

  MY Imports     20         20         20          20         20         20          0          0          0           (1000 MT)

  TY Imports     20         20         20          20         20         20          0          0          0           (1000 MT)

  TY Imp. from   0          0          0           0          0          0           0          0          0           (1000 MT)
  U.S.                                                                                                                 

  Total Supply   12563      12572      12553       6980       11962      6950        480        862        9250        (1000 MT)

  MY Exports     5103       4600       5103        1000       4000       700         0          0          3000        (1000 MT)

  TY Exports     2910       4300       2910        2000       4000       700         0          0          3000        (1000 MT)

  Feed           4800       5100       4800        3800       5200       4100        0          0          4100        (1000 MT)
  Consumption                                                                                                          

  FSI            1700       1900       1700        1700       1900       1900        0          0          1900        (1000 MT)
  Consumption                                                                                                          

  Total          6500       7000       6500        5500       7100       6000        0          0          6000        (1000 MT)
  Consumption                                                                                                          

  Ending Stocks  960        972        950         480        862        250         0          0          250         (1000 MT)

  Total          12563      12572      12553       6980       11962      6950        0          0          9250        (1000 MT)
  Distribution                                                                                                         

  Yield          2.18       2.17       2.17        1.36       2.27       1.47        0.00       0.00       2.14        (MT/HA)
  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

## Consumption

The use of barley for feed will slightly increase in marketing year
2007/2008 over the current marketing year, due to increased production
and feed demand. Barley malt production in marketing year 2007/2008 is
expected to increase slightly. According to official statistics, malt
production remains stable.

## Exports

In marketing year 2008/2009, barley exports are expected to increase to
3.0 million tons, compared to the predicted 1.0 million ton level for
marketing year 2007/2008.

Saudi Arabia is expected to remain the main destination point in
marketing year 2007/2008, accounting for nearly 60% of Ukraine's barley
exports. The remaining exports will be shipped to other traditional
markets in the Middle East and North Africa (see table below).

**Forecast of Barley Exports by Destination (MY 2008/2009**)

  ------------------ ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
  **Destinations**   **July 05-  **July 06-  **July 07 -  **July 08 -  **05/06,   **06/07    **07/08,     **July 08 -
                     June 06**   Jun07**     June 08      June 09      Share**    Share**    Share,       June 09
                                             Forecast**   Forecast**                         Forecast**   Forecast**

  Saudi Arabia       2,254       3,466       100          1,800        57%        68%        14%          60%

  Jordan             543         222         100          400          14%        4%         14%          13%

  Iran               388         109         50           250          10%        2%         7%           8%

  Syria              288         215         50           200          7%         4%         7%           7%

  Israel             83          157         50           50           2%         3%         7%           2%

  Tunisia            82          213         50           50           2%         4%         7%           2%

  Libya              71          151         50           50           2%         3%         7%           2%

  United Kingdom     55          177         1            50           1%         3%         0%           2%

  Morocco            46          68          50           50           1%         1%         7%           2%

  Algeria            18          62          50           50           0%         1%         7%           2%

  Kuwait             0           137         0            0            0%         3%         0%           0%

  Other Countries    131         125         149          50           3%         2%         21%          2%

  **Total**          **3,959**   **5,103**   **700**      **3,000**    **100%**   **100%**   **100%**     **100%**
  ------------------ ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------

######### Source: State Statistics Committee of Ukraine

*07/08, 08/09 -- FAS Kyiv Estimate*

Barley exports increased during marketing year 2006/2007 after the
government cancelled export quotas for feed grains. From July 2006 to
February 2007, total exports were 3,210,000 tons, and from March 2007 to
June 2007, barley exports reached 5,103,000 tons. Total barley exports
for marketing year 2006/2007 reached 5.1 million tons. Barley exports
could almost reach 1 million tons if the GOU cancels export quotas in
the near future which is unlikely. If the GOU doesn't cancel export
quotas, actual exports are expected to only reach 700,000 tons.

## 

## Stocks

Marketing year 2007/2008 ending stocks for barley will decrease due to
the low crop. Next year barley stocks will depend upon the government's
export policy. (Monthly barley stocks for the past two marketing years
are provided below. Please note that the graph does not account for
barley stored by small farms and private households. These two farm
categories accounted for almost 30% of all barley production in 2007.)

![](media/image5.wmf){width="6.4944444444444445in"
height="3.1631944444444446in"}

######### Source: State Statistics Committee of Ukraine for Stocks and APK-Inform for Prices

# Corn

## Corn PSD Table

  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------
  **Ukraine**                                                                                                          

  **Corn**                                                                                                             

                 2006       Revised                2007       Estimate               2008       Forecast               UOM

                 USDA\      Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\        
                 Official   Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                       New                               New                               New         

  **Market Year             10/2006    10/2006                10/2007    10/2007                10/2008    10/2008     MM/YYYY
  Begin**                                                                                                              

  Area Harvested 1700       1720       1720        1900       1628       1902        0          0          1650        (1000 HA)

  Beginning      922        937        922         1069       1107       1015        1369       547        1959        (1000 MT)
  Stocks                                                                                                               

  Production     6400       6420       6425        7400       6440       7424        0          0          7000        (1000 MT)

  MY Imports     24         0          24          0          0          20          0          0          20          (1000 MT)

  TY Imports     24         0          24          0          0          20          0          0          20          (1000 MT)

  TY Imp. from   0          0          0           0          0          0           0          0          0           (1000 MT)
  U.S.                                                                                                                 

  Total Supply   7346       7357       7371        8469       7547       8459        1369       547        8979        (1000 MT)

  MY Exports     1027       1000       1106        1500       1800       800         0          0          2500        (1000 MT)

  TY Exports     1027       1000       1106        1500       1800       800         0          0          2500        (1000 MT)

  Feed           4500       4500       4500        5000       4500       5000        0          0          5200        (1000 MT)
  Consumption                                                                                                          

  FSI            750        750        750         600        700        700         0          0          700         (1000 MT)
  Consumption                                                                                                          

  Total          5250       5250       5250        5600       5200       5700        0          0          5900        (1000 MT)
  Consumption                                                                                                          

  Ending Stocks  1069       1107       1015        1369       547        1959        0          0          579         (1000 MT)

  Total          7346       7357       7371        8469       7547       8459        0          0          8979        (1000 MT)
  Distribution                                                                                                         

  Yield          3.76       3.73       3.74        3.89       3.96       3.90        0.00       0.00       4.24        (MT/HA)
  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

## Production

Corn production is expected to decrease due to possible sown areas
decreases. The reasons for the decrease in area planted as similar to
barley. The government's grain policy resulted in large amounts of
unsold stocks at farms and elevators. Export quotas were introduced
before the corn harvest and the domestic market was unable to absorb the
1.5-2 million tons of corn surpluses.

The decrease in area planted with corn is expected to be approximately
7%. The decrease is not expected to be significant, as demand for corn
remains strong due to increased exports during the past two years.

## Consumption

Consumption of corn for feed in marketing year 2007/2008 is expected to
increase slightly because poultry inventories are going up. Though,
demand for corn is expected to be stronger on the export market than the
domestic market.

## Trade

The traditional export markets for Ukrainian corn are Former Soviet
Union countries (FSU) like Russia and Belarus. Their export share
usually accounts for approximately 20-25% of total exports. Other
traditional destinations are Israel -- 10%, Spain -- 10%, Tunisia -- 10%
and Iran -- 10%.

For marketing year 2007/2008, exports are forecasted to be 1 million
tons if the GOU cancels export quotas. Corn exports for marketing year
2008/2009 could reach 2.5 million tons, but again, only if the
government does not implement new export quotas. Export destinations are
found in the table below.

Forecast of Corn Exports by Possible Destinations (MY 2007/2008)

  ------------------ ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------
  **Destinations**   **Oct 05-   **Oct       **Oct 07 -   **July 08 -  **05/06,   **06/07    **07/08,     **July 08 -
                     Sep 06**    06-Sep 07** Sep 08       June 09      Share**    Share**    Share,       June 09
                                             Forecast**   Forecast**                         Forecast**   Forecast**

  Belarus            252         243         100          250          10%        24%        13%          10%

  Russia             240         63          50           250          10%        6%         6%           10%

  Spain              288         48          50           250          12%        5%         6%           10%

  Algeria            155         6           0            150          6%         1%         0%           6%

  Egypt              150         196         100          150          6%         19%        13%          6%

  Libya              254         25          50           250          10%        2%         6%           10%

  Tunisia            194         19          50           150          8%         2%         6%           6%

  Iran               169         58          50           150          7%         6%         6%           6%

  Israel             237         0           100          250          10%        0%         13%          10%

  Syria              196         0           100          200          8%         0%         13%          8%

  Other Countries    329         368         150          450          13%        36%        19%          18%

  **Total**          **2,464**   **1,027**   **800**      **2,500**    **100%**   **100%**   **100%**     **100%**
  ------------------ ----------- ----------- ------------ ------------ ---------- ---------- ------------ ------------

######### Source: State Statistics Committee of Ukraine

## 

## Stocks

Ending stocks of corn for marketing year 2007/2008 is forecasted to
increase due to lower exports. Ending stocks for marketing year
2008/2009 are currently forecasted to decrease. Higher demand is
expected from international markets.

![](media/image6.wmf){width="6.4944444444444445in" height="2.90625in"}

######### Source: State Statistics Committee of Ukraine for Stocks and APK-Inform for Prices

# Rye

## Rye PSD Table

  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------
  **Ukraine**                                                                                                          

  **Rye**                                                                                                              

                 2006       Revised                2007       Estimate               2008       Forecast               UOM

                 USDA\      Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\        
                 Official   Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                       New                               New                               New         

  **Market Year             07/2006    07/2006                07/2007    07/2007                07/2008    07/2008     MM/YYYY
  Begin**                                                                                                              

  Area Harvested 360        360        360         350        320        337         0          0          442         (1000 HA)

  Beginning      267        271        267         72         57         37          62         47         40          (1000 MT)
  Stocks                                                                                                               

  Production     600        584        584         550        600        563         0          0          740         (1000 MT)

  MY Imports     5          5          5           0          0          0           0          0          0           (1000 MT)

  TY Imports     5          5          5           0          0          0           0          0          0           (1000 MT)

  TY Imp. from   0          0          0           0          0          0           0          0          0           (1000 MT)
  U.S.                                                                                                                 

  Total Supply   872        860        856         622        657        600         62         47         780         (1000 MT)

  MY Exports     0          3          69          10         10         10          0          0          70          (1000 MT)

  TY Exports     0          3          69          10         10         10          0          0          70          (1000 MT)

  Feed           50         50         50          50         50         50          0          0          50          (1000 MT)
  Consumption                                                                                                          

  FSI            750        750        700         500        550        500         0          0          620         (1000 MT)
  Consumption                                                                                                          

  Total          800        800        750         550        600        550         0          0          670         (1000 MT)
  Consumption                                                                                                          

  Ending Stocks  72         57         37          62         47         40          0          0          40          (1000 MT)

  Total          872        860        856         622        657        600         0          0          780         (1000 MT)
  Distribution                                                                                                         

  Yield          1.67       1.62       1.62        1.57       1.88       1.67        0.00       0.00       1.67        (MT/HA)
  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

## 

## 

## Production

Farmers increased the area planted with winter rye in Fall 2007 and rye
production is now expected to increase. Assuming the yields are higher
than average, rye production will be about 0.7 million tons.

## Consumption

Feed, industrial and human consumption of rye are anticipated to
increase in marketing year 2008/2009. The rye consumption estimate in
marketing year 2007/2008 was revised down.

## Trade 

## 

FAS-Kyiv forecasts that rye exports for the next marketing year will be
significantly higher than in marketing year 2007/2008. This estimate
assumes the government will not reintroduce export quotas.

## Stocks

Rye stocks are stable, no change compared to last year.

# Oats

## Oats PSD Table 

  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------
  **Ukraine**                                                                                                          

  **Oats**                                                                                                             

                 2006       Revised                2007       Estimate               2008       Forecast               UOM

                 USDA\      Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\        
                 Official   Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                       New                               New                               New         

  **Market Year             07/2006    07/2006                07/2007    07/2007                07/2008    07/2008     MM/YYYY
  Begin**                                                                                                              

  Area Harvested 440        442        442         400        442        356         0          0          380         (1000 HA)

  Beginning      18         9          18          18         9          8           18         9          13          (1000 MT)
  Stocks                                                                                                               

  Production     700        690        690         550        700        545         0          0          580         (1000 MT)

  MY Imports     0          0          0           0          0          0           0          0          0           (1000 MT)

  TY Imports     0          0          0           0          0          0           0          0          0           (1000 MT)

  TY Imp. from   0          0          0           0          0          0           0          0          0           (1000 MT)
  U.S.                                                                                                                 

  Total Supply   718        699        708         568        709        553         18         9          593         (1000 MT)

  MY Exports     0          0          0           0          0          0           0          0          0           (1000 MT)

  TY Exports     0          0          0           0          0          0           0          0          0           (1000 MT)

  Feed           550        550        550         400        550        390         0          0          420         (1000 MT)
  Consumption                                                                                                          

  FSI            150        140        150         150        150        150         0          0          150         (1000 MT)
  Consumption                                                                                                          

  Total          700        690        700         550        700        540         0          0          570         (1000 MT)
  Consumption                                                                                                          

  Ending Stocks  18         9          8           18         9          13          0          0          23          (1000 MT)

  Total          718        699        708         568        709        553         0          0          593         (1000 MT)
  Distribution                                                                                                         

  Yield          1.59       1.56       1.56        1.38       1.58       1.53        0.00       0.00       1.53        (MT/HA)
  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

The area planted with oats is expected to be average, approximately the
same level as in the past 2 years. The current level is equal to the
average for the past 10 years.

The decrease in horse inventories resulted in a decrease in domestic
demand for oats and decreasing prices. Farmers have been switching to
more profitable crops like barley and corn.

# Peas

## Peas PSD Table

  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------
  **Ukraine**                                                                                                          

  **Peas**                                                                                                             

                 2006       Revised                2007       Estimate               2008       Forecast               UOM

                 USDA\      Post\      Post\       USDA\      Post\      Post\       USDA\      Post\      Post\        
                 Official   Estimate   Estimate\   Official   Estimate   Estimate\   Official   Estimate   Estimate\   
                                       New                               New                               New         

  **Market Year             01/2006    01/2006                01/2006    01/2006                01/2006    01/2006     MM/YYYY
  Begin**                                                                                                              

  Area Harvested 0          330        330         0          350        280         0          0          330         (1000 HA)

  Beginning      0          20         20          0          27         10          0          37         10          (1000 MT)
  Stocks                                                                                                               

  Production     0          687        687         0          720        300         0          0          670         (1000 MT)

  MY Imports     0          0          0           0          0          0           0          0          0           (1000 MT)

  TY Imports     0          0          0           0          0          0           0          0          0           (1000 MT)

  TY Imp. from   0          0          0           0          0          0           0          0          0           (1000 MT)
  U.S.                                                                                                                 

  Total Supply   0          707        707         0          747        310         0          37         680         (1000 MT)

  MY Exports     0          250        267         0          270        40          0          0          230         (1000 MT)

  TY Exports     0          250        267         0          270        40          0          0          230         (1000 MT)

  Feed           0          350        350         0          360        180         0          0          350         (1000 MT)
  Consumption                                                                                                          

  FSI            0          80         80          0          80         80          0          0          80          (1000 MT)
  Consumption                                                                                                          

  Total          0          430        430         0          440        260         0          0          430         (1000 MT)
  Consumption                                                                                                          

  Ending Stocks  0          27         10          0          37         10          0          0          20          (1000 MT)

  Total          0          707        707         0          747        310         0          0          680         (1000 MT)
  Distribution                                                                                                         

  Yield          0          2.08       2.08        0.00       2.06       1.07        0.00       0.00       2.03        (MT/HA)
  -------------- ---------- ---------- ----------- ---------- ---------- ----------- ---------- ---------- ----------- ---------

## Production

Peas have become an important export crop for the past 4 to 5 years.
High global demand has kept the sown area more or less stable since
marketing year 1999/2000. For marketing year 2008/2009, the sown area
for peas is expected to be slightly higher than last year. Despite high
export prices and strong international demand for Ukrainian peas, this
crop remains risky. The major problem is rain during the harvest period,
which can make harvesting impossible. That is why farmers have not
increased the sown area.

## Exports

Exports of peas in marketing year 2007/2008 are extremely low compared
to last year due to the poor crop. Next year exports are expected to
increase to about 230,000 tons.

Peas Exports From Ukraine (HS 071310)

  --------------- --------- --------- --------- --------- --------- --------
  **Country**     **Jul     **Jul     **Jul     **Jul     **Jul 06  **Jul 07
                  02-Jun    03-Jun    04-Jun    05-Jun    -Jun 07** -Feb
                  03**      04**      05**      06**                08**

  Spain           70        0         35        55        24        3

  Italy           18        10        16        49        37        8

  India           21        0         38        22        83        9

  Hungary         28        16        73        10        16        3

  Austria         3         0         6         9         21        3

  Netherlands     4         4         0         8         5         1

  Bangladesh      0         0         1         5         5         1

  Belarus         0         1         4         4         3         1

  United Kingdom  1         0         3         3         32        4

  Latvia          0         0         1         3         0         0

  Greece          0         0         0         1         6         1

  Pakistan        0         0         12        1         12        3

  Others Not      16        1         4         2         12        5
  Listed                                                            

  **TOTAL**       **166**   **35**    **201**   **178**   **262**   **42**
  --------------- --------- --------- --------- --------- --------- --------

######### Source: State Statistics Committee of Ukraine

# 

# Policy (all grains)

GOU grain policy is driven by several regulations:

1)  Export grain quotas;

2)  State Reserve (Agrarian Fund) purchases with minimum and maximum
    price regulations;

Over the past two years, the Minister of Agriculture has increased
government intervention and reduced free market measures. Export quotas
and licensing for grains have been in place during the entire 9 months
of the current marketing year and continue to be in place.

In marketing year 2007/2008, the GOU imposed export quotas for grains
for the second consecutive year. The decree was officially published on
June 26, 2007 and imposed a 3,000-ton export quota for each of the
grains (wheat, barley, corn and rye) beginning July 1, 2007. This policy
actually served as an export ban until the quota limit was increased
because of the extremely small size of the quotas. For more details
please click on the following link:
<http://www.fas.usda.gov/gainfiles/200707/146291597.doc>

On September 26, 2007, the Cabinet of Ministers of Ukraine took the next
step by adopting Decree #1179, which was officially published on October
2, 2007. The decree increased the quota for each of the grains (wheat,
barley, corn and rye) through March 31, 2008. The total size of the new
export quota was 1,203,000 tons which is much lower than the grain
traders predicted. You can read more on the following link:
<http://www.fas.usda.gov/gainfiles/200710/146292625.doc>

Many experts have attempted to estimate the damages and losses incurred
by international grain trading companies as a result of the export quota
policy. Most estimates range between \$200 -\$300 million. The Ukrainian
Grains Association estimates that Ukrainian agricultural producers lost
approximately \$1.3 billion due to the policy.

During the end of marketing year 2007/2008, the government on several
occasions announced they would cancel the quotas. However, the quotas
remain in place. The GOU once again is delaying this decision to avoid
increases in grain prices. For marketing year 2008/2009, the government
committed to cancelling the quota and this action should be taken by
July 4, 2008.

The Ministry of Agriculture is going to purchase wheat and rye through
the Agrarian Fund for the State Reserve from the 2008/2009 harvest. The
total quantity of grain to be purchased for the State Reserve is 803,000
tons of wheat and 78,000 of rye. This action was published on the
Ministry of Agriculture's web-site on March 17. The prices are also
indicated but could change as harvest time approaches.

The government approved the same budget level for marketing year
2008/2009 as the previous year for winter grains. The GOU introduced
oats subsidies (\$20 per hectare) and sugar beets production for
domestic processing (\$110 per hectare). The GOU increased subsidies for
peas, buckwheat and millet by \$4 per hectare. On February 22, 2008, the
government approved the following payments to farmers:

-   UAH 100/ha (\$20/ha) for winter wheat and triticale

-   UAH 55/ha (\$11/ha) for winter barley

-   UAH 50/ha (\$10/ha) for winter rapeseeds

-   UAH 100/ha (\$20/ha) for spring wheat and triticale

-   UAH 100/ha (\$20/ha) for peas and millet

-   UAH 80/ha (\$16/ha) for soybeans 1 reproduction, UAH 50/ha (\$10/ha)
    for soybeans 3 reproduction

-   UAH 100/ha (\$20/ha) for buckwheat and oats

-   UAH 50/ha (\$10/ha) for spring rapeseeds

-   UAH 220/ha (\$43.7/ha) for rice

-   UAH 640/ha (\$127/ha) flaxseed

-   

These subsidies are paid if the farmer insured a minimum of 20% of the
spring crop with an insurance company. Alternatively, a producer can
receive the subsidy if 20% of the milling wheat and rye is sold on the
domestic market.

# Port Infrastructure for Grain Export and Transit

There are no technical constraints that will prevent or limit the export
or transit of grain form Ukraine in the mid-term. Panamax-size ports in
Odesa, Illichevsk and Yuzhnuy are the primary Ukrainian ports for
grains. The table below provides information on grain export volumes by
years.

## Total Grain Exports by Port (Wheat, Barley, Corn and Peas) (tons)

  -------------- --------------- --------------- --------------- ---------------- --------------- -------------
  ** PORTS**     **02/03**       **03/04**       **04/05**       **05/06**        **06/07**       **07/08\***

  Belgorod -     80,076          22,346          21,501          4,201            7,757            
  Dnestr.                                                                                         

  Berdyansk      108,787         8,776           42,120          233,942          63,722          1,019

  Ilyichevsk     2,238,257       556,527         1,692,022       2,078,073        1,505,525       24,377

  Ilyichevsk     93,098          11,517          63,567          42,609           n/a              
  Fishery                                                                                         

  Izmail         40,637          64,976          39,325          40,178           32,090           

  Kerch - Sea    175,206         19,667          102,210         67,600           102230           

  Kherson        433,342         149,482         521,315         437,947          576,806         14,260

  Mariupol       0               0               16,305          18,184           70,097           

  Nikolayev      2,225,299       243,911         1,652,218       2,196,584        1,591,419       74,343

  Odesa          2,677,904       446,228         2,241,157       2,606,747        2,051,835       105,754

  Reny           5,601           3,746           37,224          141,017          5467             

  Ust-Dunaisk    291,087         0               49,099          109,040          n/a              

  Yuzhny         1,336,034       599,941         2,493,013       2,626,593        2,062,611       62,077

  Kiliya         242,045         0               541,445         722,551          32,209           

  Sevastopol     n/a             n/a             n/a             n/a              705,060          

  **Grand        **9,947,374**   **2,127,118**   **9,512,522**   **11,325,266**   **8,806,828**   **281,830**
  Total**                                                                                         
  -------------- --------------- --------------- --------------- ---------------- --------------- -------------

######### Source: Global Shipping Agency

07/08 -- July 2007 -- February 2008

## Wheat Exports by Ports (tons)

  -------------- --------------- ----------- --------------- --------------- --------------- -------------
                 **02/03**       **03/04**   **04/05**       **05/06**       **06/07**       **07/08\***

  Belgorod -     52,648                      4,863           4,201           2,997            
  Dnestr.                                                                                    

  Berdyansk      66,921                      12,058          158,208         27,678           

  Ilyichevsk     1,829,608                   1,162,693       1,175,392       632,667         14,346

  Ilyichevsk     93,098                      28,186          0                                
  Fishery                                                                                    

  Izmail         10,337                      3,977           6,241           8,571            

  Kerch - Sea    134,853                     21,759          55,094          87,588           

  Kherson        331,124                     203,378         270,739         455,495          

  Kiliya                                     0               4,397           7,150            

  Mariupol       241,185         2,982       67,815          244,437         46,014           

  Nikolayev      1,586,045                   698,942         1,084,510       339,139          

  Odesa          1,521,039       3,465       950,122         1,226,998       873,086         16,546

  Reni           5,601                       11,693          0               3,354            

  Sevastopol                                 140,035                         296,221          

  Ust-Dunaisk    206,962                     2,984           0                                

  Yuzhny         242,045                     541,445         722,551         419,144         6,600

  **Grand        **6,321,466**   **6,447**   **3,849,950**   **4,952,767**   **3,199,104**   **37,492**
  Total**                                                                                    
  -------------- --------------- ----------- --------------- --------------- --------------- -------------

######### Source: Global Shipping Agency

07/08 -- July 2007 -- February 2008

## Barley Exports by Ports (tons)

  -------------- --------------- --------------- --------------- --------------- --------------- -------------
                 **02/03**       **03/04**       **04/05**       **05/06**       **06/07**       **07/08\***

  Belgorod -     9,292           3,137           6,800           0               2,606            
  Dnestr.                                                                                        

  Berdyansk      24,180          0               18,436          32,788          28,297           

  Ilyichevsk     408,650         556,527         512,136         892,166         852,831         10,031

  Ilyichevsk     0               0               0               0                                
  Fishery                                                                                        

  Izmail         0               0               8,340           3,800           5,941            

  Kerch - Sea    10,000                          70,065          5,250           10,731           

  Kherson        50,369          48,190          148,051         25,553          25,831          3,186

  Kiliya                                         16,305          0               17,739           

  Mariupol       42,717          0               95,215          37,702          24,083           

  Nikolayev      485,880         189,283         542,875         439,104         856,771         19,211

  Odesa          836,440         405,947         837,346         779,050         912,039         31,190

  Reni           0               0               6,527           0                                

  Sevastopol                     0               147,456                         408,839          

  Ust-Dunaisk    69,500                          37,534          0                                

  Yuzhny         1,025,759       555,622         1,497,860       1,577,472       1,643,467       49,322

  Grand Total    **2,962,786**   **1,758,707**   **3,944,947**   **3,792,885**   **4,789,175**   **112,940**
  -------------- --------------- --------------- --------------- --------------- --------------- -------------

######### Source: Global Shipping Agency

07/08 -- July 2007 -- February 2008

## Corn Exports by Ports (tons)

  -------------- ------------- ------------- --------------- --------------- ------------- -------------
                 **02/03**     **03/04**     **04/05**       **05/06**       **06/07**     **07/08\***

  Belgorod -     15,008        19,209        9,838           0                              
  Dnestr.                                                                                  

  Berdyansk      17,686        8,776         11,626          42,674          2,705          

  Ilyichevsk     0             0             0               0               9,079          

  Ilyichevsk     0             11,517        35,381          42,609                         
  Fishery                                                                                  

  Izmail         5,685         63,326        8,442           15,762          7,572          

  Kerch - Sea    22,280        19,667        10,386          7,257           3,911          

  Kherson        13,533        73,204        69,684          44,132          61,067         

  Kiliya                                     0               10,670          5,233          

  Mariupol       0                           0               0                              

  Nikolayev      123,206       47,385        381,529         672,970         381,754       52,559

  Odesa          320,426       36,816        453,689         583,366         184,861       58,018

  Reni           0             3,746         19,004          126,217         2,113          

  Sevastopol                                 128,188                                        

  Ust-Dunaisk    14,626                      0               109,040                        

  Yuzhny         68,231        44,319        447,549         326,569                       6,155

  **Grand        **600,680**   **327,964**   **1,575,317**   **1,981,266**   **658,295**   **116,732**
  Total**                                                                                  
  -------------- ------------- ------------- --------------- --------------- ------------- -------------

######### Source: Global Shipping Agency

07/08 -- July 2007 -- February 2008

## Peas Exports by Ports (tons)

  -------------- ------------- ------------ ------------- ------------- ------------- -------------
                 **02/03**     **03/04**    **04/05**     **05/06**     **06/07**     **07/08\***

  Belgorod -     3,128                                                  2,154          
  Dnestr.                                                                             

  Berdyansk                                               273           5,043         1,019

  Ilyichevsk                                17,193        10,515        10,948         

  Ilyichevsk                                                                           
  Fishery                                                                             

  Izmail         24,614        1,650        18,566        14,376        10,006         

  Kerch - Sea    8,073                                                                 

  Kherson        38,317        28,088       100,202       97,523        34,410        11,074

  Mariupol                                                3,116                        

  Nikolayev      30,168        7,244        28,872                      13,755        2,573

  Ochakov                      2,027                                                   

  Odesa                                                   17,333        77,497         

  Reny                                                    14,800                       

  Ust-Dunaisk                               8,581                                      

  Yuzhny                                    6,159                                      

  Kiliya                                                                2,087          

  **Grand        **104,300**   **39,009**   **179,573**   **157,936**   **155,900**   **14,666**
  Total**                                                                             
  -------------- ------------- ------------ ------------- ------------- ------------- -------------

######### Source: Global Shipping Agency

07/08 -- July 2007 -- February 2008

## Transit of Grains by Origin (tons)

  -------------- --------------- --------------- --------------- --------------- --------------- -----------------
  ** **          **2002/2003**   **2003/2004**   **2004/2005**   **2005/2006**   **2006/2007**   **2007/2008\***

  Hungary        86,033          26,875          190,050         112,132         194,990         \-

  Kazakhstan     1,301,263       345,986         219,712         84,357          904,004         1,120,638

  Moldova        380,982         149,781         232,343         378,966         189,552         0.5

  Russia         1,237,695       730,035         205,148         311,564         241,950         1,969,464

  Unknown        \-              \-              \-              \-              \-              102,178

  **Total**      **3,005,973**   **1,252,677**   **847,252**     **887,018**     **1,530,496**   **3,192,280**
  -------------- --------------- --------------- --------------- --------------- --------------- -----------------

######### Source: Global Shipping Agency

07/08 -- July 2007 -- February 2008

## 

## Transit of Grains by Origin (tons) -- MY 2006/2007 

<table>
<colgroup>
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 6%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td> </td>
<td> </td>
<td colspan="10"><strong>PORT</strong></td>
<td> </td>
</tr>
<tr class="even">
<td><strong>ORIGIN</strong></td>
<td><strong>CARGO</strong></td>
<td><p><strong>Ilyi</strong></p>
<p><strong>chevsk</strong></p></td>
<td><strong>Izmail</strong></td>
<td><strong>Kerch</strong></td>
<td><strong>Kherson</strong></td>
<td><strong>Kiliya</strong></td>
<td><strong>Odessa</strong></td>
<td><strong>Reni</strong></td>
<td><p><strong>Sevas</strong></p>
<p><strong>topol</strong></p></td>
<td><strong>Ust-Dunaisk</strong></td>
<td><p><strong>Yuzh</strong></p>
<p><strong>ny</strong></p></td>
<td><strong>Grand Total</strong></td>
</tr>
<tr class="odd">
<td>Hungary</td>
<td>barley</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>3,112</td>
<td> </td>
<td> </td>
<td> </td>
<td>3,112</td>
</tr>
<tr class="even">
<td> </td>
<td>corn</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>87,124</td>
<td> </td>
<td>25,631</td>
<td> </td>
<td>112,754</td>
</tr>
<tr class="odd">
<td> </td>
<td>peas</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>7,317</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>7,317</td>
</tr>
<tr class="even">
<td> </td>
<td>wheat</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>36,772</td>
<td> </td>
<td>35,035</td>
<td> </td>
<td>71,807</td>
</tr>
<tr class="odd">
<td>Hungary Total</td>
<td> </td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>7,317</td>
<td>-</td>
<td>127,007</td>
<td>-</td>
<td>60,666</td>
<td>-</td>
<td>194,990</td>
</tr>
<tr class="even">
<td>Kazakhstan</td>
<td>barley</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>171,608</td>
<td> </td>
<td> </td>
<td> </td>
<td>2,900</td>
<td>174,508</td>
</tr>
<tr class="odd">
<td> </td>
<td>wheat</td>
<td>258,578</td>
<td> </td>
<td> </td>
<td>180,681</td>
<td> </td>
<td>253,165</td>
<td> </td>
<td>28,674</td>
<td> </td>
<td>8,399</td>
<td>729,496</td>
</tr>
<tr class="even">
<td>Kazakhstan Total</td>
<td> </td>
<td>258,578</td>
<td>-</td>
<td>-</td>
<td>180,681</td>
<td>-</td>
<td>424,773</td>
<td>-</td>
<td>28,674</td>
<td>-</td>
<td>11,298</td>
<td>904,004</td>
</tr>
<tr class="odd">
<td>Moldova</td>
<td>barley</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>5,432</td>
<td>45,177</td>
<td> </td>
<td> </td>
<td> </td>
<td>50,608</td>
</tr>
<tr class="even">
<td> </td>
<td>corn</td>
<td> </td>
<td>8,056</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>10,256</td>
<td> </td>
<td> </td>
<td> </td>
<td>18,312</td>
</tr>
<tr class="odd">
<td> </td>
<td>peas</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>16,749</td>
<td> </td>
<td> </td>
<td> </td>
<td>16,749</td>
</tr>
<tr class="even">
<td> </td>
<td>wheat</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>103,882</td>
<td> </td>
<td> </td>
<td> </td>
<td>103,882</td>
</tr>
<tr class="odd">
<td>Moldova Total</td>
<td> </td>
<td>-</td>
<td>8,056</td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>5,432</td>
<td>176,064</td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>189,552</td>
</tr>
<tr class="even">
<td>Russia</td>
<td>barley</td>
<td>46,297</td>
<td> </td>
<td>387</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>79,958</td>
<td>126,642</td>
</tr>
<tr class="odd">
<td> </td>
<td>wheat</td>
<td>39,500</td>
<td> </td>
<td>75,809</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td>115,309</td>
</tr>
<tr class="even">
<td>Russia Total</td>
<td> </td>
<td>85,797</td>
<td>-</td>
<td>76,196</td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>-</td>
<td>79,958</td>
<td>241,951</td>
</tr>
<tr class="odd">
<td><strong>Grand Total</strong></td>
<td><strong> </strong></td>
<td>344,375</td>
<td>8,056</td>
<td>76,196</td>
<td>180,681</td>
<td>7,317</td>
<td>430,204</td>
<td>303,071</td>
<td>28,674</td>
<td>60,666</td>
<td>91,256</td>
<td>1,530,496</td>
</tr>
</tbody>
</table>

######### Source: Global Shipping Agency

## Transit of Grains by Origin (tons) 2007/2008 -- July 2007-Febryuary 2008 MY 

  ------------ ----------- --------------- ---------------- ------------- -------------- -------------- ------------ ------------- -----------
  ** **        ** **       **PORT**                                                                                                ** **

  **ORIGIN**   **CARGO**   **Berdyansk**   **Ilyichevsk**   **Kherson**   **Mariupol**   **Nikolaev**   **Odessa**   **Yuzhnyy**   **Grand
                                                                                                                                   Total**

  Kazakhstan   barley                                       10,319                       19,880         39,144       87,472        156,814

               wheat                       161,033          161,849                      167,310        312,061      161,570       963,823

  Kazakhstan               \-              161,033          172,168       \-             187,190        351,205      249,042       1,120,638
  Total                                                                                                                            

  Moldova      wheat                                                                                    454                        454

  Moldova                  \-              \-               \-            \-             \-             454          \-            454
  Total                                                                                                                            

  Unknown      barley                      22,765                                                                                  22,765

               rye                                                        2,489                                                    2,489

               wheat                       28,643           9,645         27,103                        10,679                     76,070

  Unknown                  \-              51,408           9,645         29,592         \-             10,679       \-            101,324
  Total                                                                                                                            

  Russia       barley                      21,930                                        20,881         48,274       152,486       243,571

               corn                                         4,289                                                                  4,289

               triticale   3,496                                                                                                   3,496

               wheat       30,211          505,984          54,054                       241,426        301,658      585,173       1,718,507

  Russia Total             33,707          527,914          58,343        \-             262,307        349,932      737,659       1,969,864

  **Grand      ** **       33,707          740,354          240,156       29,592         449,497        712,271      986,702       3,192,280
  Total**                                                                                                                          
  ------------ ----------- --------------- ---------------- ------------- -------------- -------------- ------------ ------------- -----------

######### Source: Global Shipping Agency

# Statistical Tables

## Final Statistics on Grain and Pulse Production in Ukraine (2007)

  -------------------- ------------ -------------- ------------- ------------
  Crop                 Area Planted Area Harvested Production    Yield

                       1,000 ha     1,000 ha       1,000 MT      MT/ha

  **Total Wheat,       **6287.8**   **5951.3**     **13937.7**   **2.34**
  including -**                                                  

  Winter Wheat         5816.7       5,516          13,173        2.39

  Spring Wheat         471.1        435.1          765           1.76

  **Total Rye,         **350.1**    **337.4**      **562.5**     **1.67**
  including -**                                                  

  Winter Rye           349.2        336.5          561.2         1.67

  Spring Rye           0.9          0.9            1.3           1.51

  **Total Barley,      **4975.3**   **4088.4**     **5980.8**    **1.46**
  including -**                                                  

  Winter Barley        558.6        481.6          875           1.82

  Spring Barley        4416.7       3,607          5,106         1.42

  Corn for Grain       2087.2       1,903          7,421         3.90

  Oats                 403.8        356            544.4         1.53

  Millet               122          91.6           84.3          0.92

  Buckwheat            351.9        310.1          217.4         0.7

  Rice                 21.1         21.1           108           5.11

  Peas                 368.2        246.8          268           1.09

  Beans                20.5         20.2           30.8          1.52

  Sorghum              72.4         51.9           78.1          1.51

  Total Grain and      15114.9      13,428         29,295        1.14
  Pulses                                                         
  -------------------- ------------ -------------- ------------- ------------

*Source: State Statistics Committee of Ukraine*

The graph below shows historical decrease in wheat sown areas and
increase in barley and corn sown areas.

## Historical Sown Areas on Wheat, Barley and Corn and Trend Lines

![](media/image7.wmf){width="6.447916666666667in"
height="4.291666666666667in"}

Source: State Statistics Committee of Ukraine

## Wheat Exports by Country, Year-to Year Comparison (1,000 MT)

  ---------------- ----------- -------- ----------- ----------- ----------- -----------
  **Country**      **Jul       **Jul    **Jul       **Jul       **Jul 06    **Jul 07 -
                   02-Jun 03** 03-Jun   04-Jun 05** 05-Jun 06** -Jun 07**   Feb 08**
                               04**                                         

  Spain            1,955       5        1,135       709         421          

  Israel           420         11       470         648         497         47

  Korea, South     311         0        108         405         25          0

  Italy            219         0        478         402         95          10

  Indonesia        209         0        234         372         2           0

  Tunisia          337         0        436         363         232         7

  Algeria          196         0        147         322         14          0

  Morocco          238         0        144         320         4           0

  Bangladesh       0           0        82          318         190         0

  Yemen            0           0        0           309         150         0

  Egypt            261         8        187         307         439         6

  Kenya            48          0        10          242         141         38

  Hungary          340         0        253         205         14          0

  Philippines      0           0        145         199         38          0

  Libya            12          0        21          188         11          0

  Jordan           26          0        34          157         0           0

  Syria            0           0        23          94          35          0

  Mauritania       82          0        71          91          18          0

  United Arab      0           0        0           83          0           0
  Emirates                                                                  

  South Africa     102         0        0           69          25          0

  Vietnam          0           0        0           50          0           0

  Nigeria          48          0        15          38          0           0

  Peru             234         0        0           36          94          0

  Netherlands      172         0        7           10          0           0

  United States    28          0        56          6           17          0

  Greece           65          10       24          3           24          0

  Portugal         259         0        0           0           0           0

  Canada           163         0        0           0           0           0

  Belgium          351         0        0           0           57          0

  Brazil           119         0        0           0           0           0

  Other Not Listed 347         13       296         483         789         2

  **Total**        **6,542**   **47**   **4,377**   **6,427**   **3,330**   **111**
  ---------------- ----------- -------- ----------- ----------- ----------- -----------

*Source: State Statistics Committee of Ukraine*

## Monthly Wheat Exports by Destination (July 2006- February 2007), 1,000 MT

  -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -----------
  ** Country**   **Jul-08**   **Aug-08**   **Sep-08**   **Oct-08**   **Nov-08**   **Dec-08**   **Jan-08**   **Feb-08**   **TOTAL**

  Bangladesh     0            0            0            0            0            0            0            0            **0**

  Spain          0            0            0            0            0            0            0            0            **0**

  India          0            0            0            0            0            0            0            0            **0**

  Switzerland    0            0            0            0            0            0            0            0            **0**

  Morocco        0            0            0            0            0            0            0            0            **0**

  Mozambique     0            0            0            0            0            0            0            0            **0**

  Peru           0            0            0            0            0            0            0            0            **0**

  Philippines    0            0            0            0            0            0            0            0            **0**

  Korea, South   0            0            0            0            0            0            0            0            **0**

  Libya          0            0            0            0            0            0            0            0            **0**

  South Africa   0            0            0            0            0            0            0            0            **0**

  Tunisia        7            0            0            0            0            0            0            0            **7**

  Egypt          6            0            0            0            0            0            0            0            **6**

  United Kingdom 0            0            0            0            0            0            0            0            **0**

  United States  0            0            0            0            0            0            0            0            **0**

  Yemen          0            0            0            0            0            0            0            0            **0**

  Algeria        0            0            0            0            0            0            0            0            **0**

  Israel         44           3            0            0            0            0            0            0            **47**

  Italy          10           0            0            0            0            0            0            0            **10**

  Kenya          38           0            0            0            0            0            0            0            **38**

  Others Lot     0            1            1            0            0            0            0            0            **2**
  Listed                                                                                                                 

  **TOTAL**      **106**      **4**        **1**        **0**        **0**        **0**        **0**        **0**        **111**
  -------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -----------

*Source: State Statistics Committee of Ukraine*

## Barley Exports by Country, Year-to Year Comparison (1,000 MT)

  ------------- ----------- ----------- ----------- ----------- ----------- --------
  **Country**   **Jul       **Jul       **Jul       **Jul       **Jul       **Jul
                02-Jun 03** 03-Jun 04** 04-Jun 05** 05-Jun 06** 06-Jun 07** 07-Feb
                                                                            08**

  Saudi Arabia  1,587       831         1,806       2,254       3,466       7

  Jordan        0           46          499         543         222         3

  Iran          0           14          433         388         109         0

  Syria         62          0           428         288         215         18

  Israel        146         54          372         83          157         0

  Tunisia       238         0           195         82          213         0

  Libya         42          17          215         71          151         0

  Japan         121         0           0           60          0           0

  United        0           24          8           55          177         1
  Kingdom                                                                   

  Morocco       136         9           93          46          68          0

  Cyprus        160         107         6           27          3           0

  Hungary       32          36          101         27          0           0

  Algeria       90          0           39          18          62          0

  Greece        3           3           44          3           16          0

  Switzerland   23          52          0           2           0           0

  Kuwait        94          68          0           0           137         0

  Italy         15          4           28          0           0           0

  Turkey        0           137         3           0           0           14

  United States 8           6           3           0           0           0

  Others Not    128         107         43          14          105         0
  Listed                                                                    

  **TOTAL**     **2,883**   **1,517**   **4,315**   **3,959**   **5,103**   **43**
  ------------- ----------- ----------- ----------- ----------- ----------- --------

*Source: State Statistics Committee of Ukraine*

## Monthly Barley Exports by Destination (July 2006- February 2007), 1,000 MT

  ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -----------
  **Country**   **Jul-08**   **Aug-08**   **Sep-08**   **Oct-08**   **Nov-08**   **Dec-08**   **Jan-08**   **Feb-08**   **TOTAL**

  Saudi Arabia  0            0            0            0            0            0            0            0            **0**

  Tunisia       0            0            0            0            0            0            0            0            **0**

  Syria         0            0            0            0            0            0            0            16           **16**

  United Arab   0            0            0            0            0            0            0            0            **0**
  Emirates                                                                                                              

  United        0            3            0            0            0            0            0            1            **4**
  Kingdom                                                                                                               

  Morocco       2            0            0            0            0            0            0            0            **2**

  Algeria       0            0            0            0            0            0            0            0            **0**

  Iran          0            0            0            0            0            0            0            0            **0**

  Israel        7            0            0            0            0            0            0            0            **7**

  Jordan        0            0            0            0            0            0            0            0            **0**

  Kuwait        0            0            0            0            0            0            0            0            **0**

  Libya         0            0            0            0            0            0            0            0            **0**

  Turkey        0            0            0            0            0            0            0            14           **14**

  Others Not    0            0            0            0            0            0            0            0            **0**
  Listed                                                                                                                

  **TOTAL**     **9**        **3**        **0**        **0**        **0**        **0**        **0**        **31**       **43**
  ------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -----------

*Source: State Statistics Committee of Ukraine*

## Corn Exports by Country, Year-to Year Comparison (1,000 MT)

  -------------- --------- ----------- ----------- ----------- ------------ -----------
  **Country**    **Oct     **Oct       **Oct       **Oct       **Oct 06-Sep **Oct
                 02-Sep    03-Sep 04** 04-Sep 05** 05-Sep 06** 07**         07-Feb 08**
                 03**                                                       

  Spain          40        7           329         288         48           27.5

  Libya          33        3           101         254         25           0

  Belarus        32        158         254         252         243          5

  Russia         52        408         202         240         63           9.2

  Israel         146       4           294         237         0            0

  Syria          6         0           113         196         0            0

  Tunisia        71        0           165         194         19           0

  Iran           0         0           517         169         58           0

  Algeria        76        0           103         155         6            0

  Egypt          126       0           54          150         196          0

  Portugal       0         0           7           79          0            0

  Malaysia       0         0           0           64          0            0

  United Kingdom 9         17          6           45          3            0

  Georgia        0         3           17          41          41           0

  Hungary        0         85          0           22          6            0

  Turkey         30        42          41          8           240          0

  Poland         0         22          0           0           0            0

  Lithuania      36        60          0           0           7            8.2

  Romania        0         168         0           0           0            0

  United States  0         1           13          0           0            0

  Bulgaria       0         33          0           0           3            16.5

  Estonia        24        30          0           0           2            0

  Greece         0         77          0           0           4            23.3

  Latvia -       0         0           0           120         0            4.5

  Armenia -      0         0           26          0           9            3

  Others Not     125       118         123         71          54           4
  Listed                                                                    

  **TOTAL**      **807**   **1,236**   **2,339**   **2,464**   **1,027**    **102**
  -------------- --------- ----------- ----------- ----------- ------------ -----------

*Source: State Statistics Committee of Ukraine*

## Peas Exports by Country, Year-to Year Comparison (1,000 MT)

  --------------- --------- -------- --------- --------- --------- ----------
  **Country**     **Jul     **Jul    **Jul     **Jul     **Jul 06  **Jul 07
                  02-Jun    03-Jun   04-Jun    05-Jun    -Jun 07** -Feb 08**
                  03**      04**     05**      06**                

  Spain           70        0        35        55        24        3

  Italy           18        10       16        49        37        8

  India           21        0        38        22        83        9

  Hungary         28        16       73        10        16        3

  Austria         3         0        6         9         21        3

  Netherlands     4         4        0         8         5         1

  Bangladesh      0         0        1         5         5         1

  Belarus         0         1        4         4         3         1

  United Kingdom  1         0        3         3         32        4

  Latvia          0         0        1         3         0         0

  Russia          0         0        1         2         0         0

  Greece          0         0        0         1         6         1

  Armenia         1         1        1         1         1         0

  Pakistan        0         0        12        1         12        3

  Uzbekistan      0         0        1         1         1         0

  Turkmenistan    0         1        0         1         1         0

  Azerbaijan      0         0        0         1         1         0

  Kazakhstan      0         0        0         1         0         0

  Lithuania       2         0        3         0         1         0

  Poland          0         0        2         0         0         0

  Others Not      16        1        4         2         12        5
  Listed                                                           

  **TOTAL**       **166**   **35**   **201**   **178**   **262**   **42**
  --------------- --------- -------- --------- --------- --------- ----------

*Source: State Statistics Committee of Ukraine*