ХІІІ International Conference “Black Sea Grain - 2016”
April 20-21, 2016, Kiev, InterContinental
 
 

Current agribusiness strategies for Black Sea region should avoid short single-loop models and be calculated for 5-7 years

This was stated by UkrAgroConsult Director Sergey Feofilov on XII International Conference Black Sea Grain 2015.

According to analysts, the businesses of the region today are largely guided by the strategies of the past, consisting of acquiring a large number of resources and assets, but are not actually interested in managing them. And now, the business in the Black Sea region introduces an element of instability to the global market, as firms seek to increase exports, especially of oilseeds, and do not think about its effectiveness.

S. Feofilov also said that in the 2015/16 season, the export in the region will be lower or slightly higher than today.

The expert paid particular attention to the risks for today's agricultural markets of Ukraine, which, in his opinion, are the sharp contraction of the domestic market, decrease of effective demand, growth of government and corporate debt, shortening of foreign-currency and gold reserves.

"In such circumstances, the food industry of Ukraine can turn into a huge factory for the production costs, since today manufacturers are required to keep food prices while raw materials grow in prices," - said the analyst.

S. Feofilov stressed that Ukraine should find and take its place on the markets of the future, taking into account the fact that by 2050 the production of grain in the world can grow to 3 billion tons, meat - up to 500 MMT, and China, the largest market, will spent on food up to $2 trillion per year, 2 times more than in 2009.

 

UkrAgroConsult

 

Black Sea Grain