KYIV- The Ukrainian pig and poultry growers associations have asked the government to set a maximum volume of corn available for export in the 2020/21 season due to a sharp jump in fodder costs that could push up meat prices.
Ukraine is among the world's largest corn producers and exporters but poor weather this year could reduce the harvest to 33 million tonnes from 35.9 million tonnes in 2019, according to economy ministry estimates.
Some analysts and traders see the harvest at 27-29 million tonnes. Ukraine also faces a smaller harvest of wheat, barley and some oilseeds.
Strong demand from importers and a decrease in harvest have pushed up local corn and wheat prices sharply, analysts have said. In October, milling wheat export prices jumped to the highest in two seasons.
"Rising prices of feed corn by more than 65%, feed wheat by 57%, sunflower and soybean meal by 39% and 42%, respectively, contributed to an increase in the cost of fodder by 40-45%," the two associations said in a joint statement.
They asked the government to include corn in the memorandum which the government and traders sign every year in a bid "to prevent further increases in the price of raw materials and to prevent a shortage of fodder on the market".
This year's memorandum limits only wheat exports, setting the maximum volume for export at 17.5 million tonnes.
Ukraine has exported 2.5 million tonnes of corn so far this season, 1.9 million tonnes less than in the same period a season ago, the economy ministry said.
(Reporting by Pavel Polityuk Editing by Mark Heinrich) ((pavel.polityuk@tr.com; +380 44 2449150; Reuters Messaging: pavel.polityuk.thomsonreuters.com@reuters.net))
