Russia, Ukraine, Kazakhstan could boost grain trade 2.5-fold to 55 mln tonnes this year - IGC
LONDON. Nov 25 (Interfax) - Russia, Ukraine and Kazakhstan could boost their grain trade by 2.5-fold to 55 million tonnes this agricultural year (July 2011-June 2012), International Grains Council (IGC) experts said.
World trade in grains is expected to increase next year, "especially from the Black Sea region, whose total grain shipments are set to total 55 million tonnes, up from only 22 million last year," the experts said in a report posted on the IGC website.
Traditionally, the Black Sea region refers to Russia, Ukraine and Kazakhstan.
"World trade in grains in 2011/12 (July/June) is expected to climb by 11 million tonnes to a record 254 million, 4 million more than forecast previously, reflecting larger than anticipated wheat purchases after this season's marked upturn in medium and lower grade supplies," the report said.
The IGC forecast brought to the foreground the question of creating a Black Sea grain pool of grain exporters comprising Russia, Ukraine and Kazakhstan. The necessity of creating a "grain OPEC" was first mentioned at the International Grain Forum in St. Petersburg in the summer of 2009.
Talks on this issue were initiated, but the proposal was ever implemented. Experts say that the stalemate mostly resulted from the Ukrainian side's position.
However, during a visit to Kazakhstan on Thursday, Ukrainian Prime Minister Mykola Azarov proposed returning to the idea of creating the three-party Black Sea grain pool.
"Together, we three countries provide 20% of world exports, and our voice would be heard," Azarov's press secretary Vitaly Lukyanenko said.
Such a union "would allow the three countries to coordinate their export policy and earn decent money." "We need to unite and take control of the price on such an important strategic commodity as wheat for food," he said.
The agrarian authorities of the three countries forecast that Russia could export around 25 million tonnes of grain, Ukraine - 27 million tonnes, and Kazakhstan - up to 15 million tonnes this agricultural year.