The export of Ukrainian grain is following factors...The export competitiveness of Ukrainian grain...
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The export competitiveness of Ukrainian grain is underpinned by the following factors — » The Ukrainian Hryvnia remaining devalued. The Hryvnia devalued 60% against the US dollar in 2014/5, compared to the Australian dollar devaluation of 25% in the same period. » Many Ukrainian grain growers are yet to fully embrace modern farming methods that will further reduce their costs of production and improve yield stability (Table 1). » Ukraine’s logistics and infrastructure challenges are being addressed by investment supported by major European banks and via multi-national grain companies’ investments (Figure 1). » Ukraine has a large and growing source of demand for grains on its doorstep in several Middle East and north African countries. Table 1 Costs of wheat production in Ukraine and Australia* (AUD/ha) Cost component ($/t) Ukraine Australia Wheat yield (t/ha) 3.35 1 . 82 Seed 42 27 Fertiliser 181 90 Chemicals 74 110 Diesel 54 15 Labour 25 11 Variable operating costs 376 253 Direct salary and tax 10 43 Land 60 80 Total costs ($/ha) 446 376 Total costs ($/t) 133 207 * Estimates based on weighted averages across regions and production systems Source: AEGIC 2016
Transcript of The export of Ukrainian grain is following factors...The export competitiveness of Ukrainian grain...
The export competitiveness of Ukrainian grain is underpinned by the following factors —
» The Ukrainian Hryvnia remaining devalued. The Hryvnia devalued 60% against the US dollar in 2014/5, compared to the Australian dollar devaluation of 25% in the same period.
» Many Ukrainian grain growers are yet to fully embrace modern farming methods that will further reduce their costs of production and improve yield stability (Table 1).
» Ukraine’s logistics and infrastructure challenges are being addressed by investment supported by major European banks and via multi-national grain companies’ investments (Figure 1).
» Ukraine has a large and growing source of demand for grains on its doorstep in several Middle East and north African countries.
Table 1 Costs of wheat production in Ukraine and Australia* (AUD/ha)
Cost component ($/t) Ukraine Australia
Wheat yield (t/ha) 3.35 1.82
Seed 42 27
Fertiliser 181 90
Chemicals 74 110
Diesel 54 15
Labour 25 11
Variable operating costs 376 253
Direct salary and tax 10 43
Land 60 80
Total costs ($/ha) 446 376Total costs ($/t) 133 207* Estimates based on weighted averages across regions and production systems
Source: AEGIC 2016
For these actions to be successful, they need to form part of a broadly-supported, cohesive response by the Australian wheat industry to the threats and opportunities the industry faces. Failure to adopt a well-coordinated approach, which minimises fragmentation and duplication, will weaken Australia’s response to these challenges.
Download the full report here www.aegic.org.au
AEGIC is an initiative of the Western Australian State Government and Australia’s Grains Research and Development Corporation
Department ofAgriculture and Food
22,000 grain growers producing 44mmt
Capacity to store 15mmt — 20–80% of an
average harvest
20–30km average distance, usual truck
capacity 44t
550 receival sites with a total storage capacity of 55mmt
8 rail companies operating regionally, 3 rail gauges, 5400km grain only track,
commonly 60 wagon trains carrying 4500mt
20 bulk terminals at 18 ports
1100+ ocean vessels and 28mmt grain and
oilseed exported (18mmt wheat)
40,000 grain and oilseed growers
producing 71mmt
Capacity to store 14mmt — 15–20% of an
average harvest
30–60km average distance. Most inland recieval sites can only accept 30t trucks and less than 10m long
>800 receival sites with a total storage capacity of 41mmt. This includes
790 registered sites with a storage capacity
of 33mmt
1 state-owned rail company owns 84% of rail wagons, 1 rail gauge. Trains up to 54 wagons carrying
3200t. Over-limit truck loads common
24 bulk terminals at 14 ports
38mmt grain and oilseed exported (8mmt wheat)
Australia
20–30kmRoad transport
ReceivalsiteProducing 44mmt
Harvest 28mmtexportedPort
terminalOn-farmstorage
38mmtexported
100–400km
50%rail transport
Ship
50%road transport
Ukraine
30–60kmRoad transport
ReceivalsiteProducing 71mmt
Harvest Portterminal
On-farmstorage
91%ship
9%rail or road100–700km
61%rail transport
35%road transport
4%river barge
22,000 grain growers producing 44mmt
Capacity to store 15mmt — 20–80% of an
average harvest
20–30km average distance, usual truck
capacity 44t
550 receival sites with a total storage capacity
of 55mmt
8 rail companies operating regionally, 3 rail gauges, 5400km grain only track,
commonly 60 wagon trains carrying 4500mt
20 bulk terminals at 18 ports
1100+ ocean vessels and 28mmt grain and
oilseed exported (18mmt wheat)
40,000 grain and oilseed growers
producing 71mmt
Capacity to store 14mmt — 15–20% of an
average harvest
30–60km average distance. Most inland recieval sites can only accept 30t trucks and less than 10m long
>800 receival sites with a total storage capacity of 41mmt. This includes
790 registered sites with a storage capacity
of 33mmt
1 state-owned rail company owns 84% of rail wagons, 1 rail gauge. Trains up to 54 wagons carrying
3200t. Over-limit truck loads common
24 bulk terminals at 14 ports
38mmt grain and oilseed exported (8mmt wheat)
Australia
20–30kmRoad transport
ReceivalsiteProducing 44mmt
Harvest 28mmtexportedPort
terminalOn-farmstorage
38mmtexported
100–400km
50%rail transport
Ship
50%road transport
Ukraine
30–60kmRoad transport
ReceivalsiteProducing 71mmt
Harvest Portterminal
On-farmstorage
91%ship
9%rail or road100–700km
61%rail transport
35%road transport
4%river barge
22,000 grain growers producing 44mmt
Capacity to store 15mmt — 20–80% of an
average harvest
20–30km average distance, usual truck
capacity 44t
550 receival sites with a total storage capacity
of 55mmt
8 rail companies operating regionally, 3 rail gauges, 5400km grain only track,
commonly 60 wagon trains carrying 4500mt
20 bulk terminals at 18 ports
1100+ ocean vessels and 28mmt grain and
oilseed exported (18mmt wheat)
40,000 grain and oilseed growers
producing 71mmt
Capacity to store 14mmt — 15–20% of an
average harvest
30–60km average distance. Most inland recieval sites can only accept 30t trucks and less than 10m long
>800 receival sites with a total storage capacity of 41mmt. This includes
790 registered sites with a storage capacity
of 33mmt
1 state-owned rail company owns 84% of rail wagons, 1 rail gauge. Trains up to 54 wagons carrying
3200t. Over-limit truck loads common
24 bulk terminals at 14 ports
38mmt grain and oilseed exported (8mmt wheat)
