The Ukrainian Agrarian Confederation (UAC) has welcomed the  decision by the cabinet of ministers to impose higher export quotas for  grain stored in port elevators, saying it will help relieve the elevators of grain, according to the Ukrainian Agrarian Confederation website.

The cabinet decision tallies with the UGC position on the issue which has been repeatedly publicized in recent time.

In addition, the UGC views as absolutely logical further liberalization of the quote-setting policy, including canceling quotas for the export of feed grain.

Simultaneously, UAC leaders are convinced that such liberalization must be accompanied by a number of other steps aimed at raising competitiveness of Ukraine`s feed sector. Judging by the statistics on the sales of cattle-breeding products, sales of live weight meat in 2006 fell by 20-25


It is clear that, given such conditions, domestic cattle breeding cannot stay competitive, the more so that world grain prices are rather high.

Therefore, the UAC believes that it is necessary to implement a range of measures to cut the contraband of meat, prevent underestimation of meat customs value as well as to study the prospects of meat import via free economic zones.

In this respect, UAC experts have stressed the importance of drawing up steps in advance to raise the purchases of 2007 grain by the Agrarian Fund and the State Reserve, creating conditions for the purchase by these state organizations of adequate grain supplies in July-August and eventually eliminating the issue of export quotas imposition.

For the record, the cabinet of ministers of Ukraine has increased grain export quotas for the 2006/2007 marketing year.

According to the Ministry for Agrarian Policy press service, an appropriate cabinet resolution #185 of Feb. 13, 2007 "On making changes in the cabinet of ministers resolution of Dec. 8, 2006 #1701" has been signed by Premier Yanukovych.

Accordingly, the grain export quota valid till the end of 2006/2007 will be increased to 864,000 tons, including 606,000 tons for barley, 30,000 tons for maize, and 228,000 tons for wheat.

The resolution comes into force on publication. In addition, the MAP press service notes that the ministry is currently drawing up a resolution canceling export quotas for wheat, maize and barley

This news was monitored by the Action Ukraine Monitoring Service for the Action Ukraine Report (AUR), Morgan Williams, SigmaBleyzer, Editor.