August 4, 2011

Ukraine Offers United Nations to Create World Grain Reserve

KYIV, Ukraine, August 4, 2011 /PRNewswire/ --

The Minister of Agrarian Policy and Food of Ukraine Mykola Prysyazhnyuk
informed that his country had initiated the creation of the world's grain
reserve under the auspices of the United Nations. Ukraine would take on the
responsibility to form the reserve of 10 to 12 mln tons of grain, preserve
it and make grain interventions on the market following the respective
decisions by the UN.

Ukraine's 2011 grain crop at the moment is 35.6% larger than the amount
of crop harvested by August of 2010. According to the Minister, these
indicators allow Ukraine to create the world grain reserve fund. "We brought
a motion to the UN suggesting to create the world grain reserve on the
territory of Ukraine," said Prysyazhnyuk. The Minister also noted that
Ukraine can now position herself as one of the world grain market leaders.

World grain reserve would presumably be used to regulate world grain
prices by intervening in the market in times of low grain supply. This would
provide for the stability of the world grain prices as well as guarantee
food security of the global population. Given the ongoing famine in Africa
and global food insecurity, the creation of the world grain reserve is
expected to be a useful tool for the UN in its struggle to provide
humanitarian assistance in line with the UN World Food Programme.

Ukraine used to bear the title of the breadbasket of Europe in the past
and has been referred to as such ever since. It is estimated that Ukraine
produced approximately one quarter of all agricultural output of the Former
USSR. Experts believe Ukraine's annual grain production to be at least 33-35
mln tons per year, which leaves a substantial amount of grain for export
considering the fact that the domestic consumption is set at the mark of
25-26 mln tons. Ukraine expects to harvest over 40 mln tons of grain in

Earlier, the President of the National Academy of Agrarian Sciences of
Ukraine Mykola Bezuhly said that the future world grain reserve is to be
managed by the Food and Agriculture Organization of the United Nations while
international financial institutions will sponsor the fund.

SOURCE Worldwide News Ukraine