Cabinet to regulate export/import of grain in 2007/08 MY in exchange for stable meat prices

17.08.2007 14:31 "Agro Perspectiva" (Kyiv) — The Cabinet of Ministers has promised meat producers to regulate export/import of grain during 2007/08 MY to ensure sufficient volumes of feed grain in the market to meet demands of cattle breeding sector. Producers in response bounded to ensure stable prices for meat products and restrain from unreasonable price increase for products by late 2007. This reads the memorandum on cooperation, which the sides have signed on August 14. Hence, in 2007/08 MY grain trade will be limited by administrative control by the government. The government is very likely to prolong quotas for grain export after October 1. The Cabinet of Ministers has also offered the Verkhovna Rada cancelled wheat import duty of EUR 40 per ton and rye — EUR 20 per ton. At the same time, the government examines possible revoke of VAT on grain import. As to Agro Perspectiva earlier report, export of grain in 2006/07 MY reduced by 27.7% or 3,680,814 tons to 9,619,043 tons against 2005/06 MY. In 2005/06 MY (July 2005-June 2006) grain export surged to 13.3 million tons (+20%) against 2004/2005 MY.

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