China wants to diversify imports for food security
Ukraine grain producer UkrLandFarming Plc is looking to export corn to China as China looks to diversify its corn imports away from the U.S. to strengthen food security, according to UkrLandFarming Chairman and owner Oleg Bakhmatyuk.
China’s corn imports could increase by 35 percent due to a significant increase in demand for chicken and pig feed, according to the United Nations. Ukraine has increased production more than threefold in the past five years and is the world’s second-biggest exporter, according to the U.S. Department of Agriculture — and UkrLandFarming may harvest 1.6 million metric tons of corn in the 2012 harvest year. In fact, the company already has contracts to sell corn to China, but must clear “sluggish bureaucracy” before shipments can start, said Bakhmatyuk.
Ukrainian corn would cost about $320 per ton for sale from Chinese ports. U.S. corn after tax, on May 8, cost $404, while China’s domestic corn was $402, according to Shanghai JC Intelligence Co. Ltd.