If we compare the wholesale prices for Ukrainian flour with other exporting countries, then ours is the cheapest. Dmitry Prikhodko, an economist at the investment department of FAO, spoke about this at the forum in Odessa.
According to him, in 2017 the average price for the Ukrainian product reached only $218 per ton.
“Domestic flour remains the cheapest on the world market. Because of this, its quality is deliberately perceived as low. And although that is not always true, however, it creates difficulties for increasing supplies,” the APK-Inform quotes the expert.
Ukrainian flour is bought in Iraq, there is a rather liberal attitude to its import. Other countries from this region (Kuwait, Iran) set import duties from 15%.
In Egypt, the import duty is only 5%, but this market is too closed to import flour there.
Instead, Prikhodko advises Ukraine to pay attention to the Angolan market, which, not having its own production, is quite open to import flour. Also, promising markets are the Philippines, Malaysia, and Indonesia.
For his part, Vladimir Kalashlinsky, an expert on trade and logistics for US-based Global Foods Trading Inc., added that Ukraine could potentially increase external supplies of flour by 100 thousand tons per year. But for this, it is necessary to solve the logistical difficulties that arise for exporters. In addition, we should not forget about marketing and improving the quality of the product.
At the same time, both experts agreed that on the supply of flour, preliminary agreements at the state level were necessary.
We recall that, according to the results of 2017/18 MY, the export of flour from Ukraine amounted to 429 thousand tons, which is a record for our country. The main buyers are East Asia, the Middle East and Africa. They account for over 80% of export volumes.