Ukrainian state-run grain firm GPZKU said on Friday it would supply the first of its maize to the Chinese market in October-November under a $1.5 billion deal signed last year. Under a deal agreed last year with China, GPZKU obtained a $1.5 billion loan to finance improvements to the former Soviet republic's agriculture. GPZKU is exporting its grain via Chinese operator China National Machinery Complete Industry Engineering Corporation.
However, until now, the Chinese firm has resold Ukrainian grain to other countries. GPZKU said earlier this year that it planned to buy up to 4 million tonnes of produce from the 2013 harvest using Chinese funds and expected exports of 2 million tonnes by the end of the year. Ukraine, the world's fourth-largest maize exporter in 2012/13, is likely to harvest a record maize crop of 26 million tonnes this year and plans to export about 16 million tonnes this season. Ukrainian maize has already won several international tenders, according to national grain lobby UAC.
Ukraine, which consumes about 10 million tonnes per season, harvested 20.9 million tonnes of the commodity in 2012. Agriculture Minister Mykola Prysyazhnyuk told Reuters this week that Kiev, which was looking for new markets for its bumper harvest, hoped to add China to the list of its export destinations soon. He said that GPZKU had already sold 600,000 tonnes of wheat and barley since June to a Chinese state company for export to clients in the Middle East and other markets. Ukraine has already met all the requirements to ship maize to China's domestic market and will also supply it with wheat once it receives authorisation from the Chinese side, the minister said.
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