The largest importers of Ukrainian agricultural products may reduce purchases due to coronavirus - 10.03.2020
The largest importers of Ukrainian agricultural products - China, India, the Netherlands and Spain - may reduce purchases of Ukrainian agricultural products due to coronavirus, the spread of which can complicate the logistics of goods.
This opinion was expressed by the economist of the investment department of The Food and Agriculture Organization Andrei Yarmak on his channel in Telegram.
“There are problems with coronavirus in China and India - the two largest countries in the world and the largest importers of food from Ukraine. These two countries provide about 16-18% of revenue from agricultural exports of Ukraine. They mainly buy vegetable oil, meal and cereal from us, ”said Andrei Yarmak.
According to him, the spread of the virus can lead to problems with logistics and reduce imports of agricultural products. At the same time, he noted that the import of these basic products will suffer the least. Moreover, the expert predicts a lower yield of grain and oilseeds this year.
“But let's look further - two more key buyers with volumes not much smaller than China and India, now have big problems with coronavirus. These are the Netherlands and Spain. Even a 10% reduction in imports in these countries will mean that Ukraine is losing about $ 600-800 million in foreign exchange earnings. And this does not take into account Italy, Germany and other countries, ”the expert emphasized.
In his opinion, exporters should closely monitor the events with coronavirus in these countries, which could lead to the loss of contracts, the crisis of non-payment for goods and other problems, and added that in these conditions it is difficult to predict anything.
Recall that Andrei Yarmak also believes that the fall in world oil prices, as well as the Italian stock market against the backdrop of coronavirus, could lead to a collapse in prices on the world grain and oilseeds market, which will hit the Ukrainian economy.