Grain Market Study Tour to France for Ukrainian Grain Sector Stakeholders
Ukraine has a strong potential to produce and export larger grain volumes through improved yields and increased acreages. However, in order to realize Ukraine’s potential in the grain sector a number of structural constraints need to be removed, including the absence of price risk management mechanisms. Within FAO/EBRD Review of the Ukrainian Grain Sector, FAO is helping to improve the dialogue between Ukraine’s private business and government.
On 6-10 October 2009, a Study tour was organized by the French Embassy in Ukraine, Offre & Demande Agricole Info and FAO to help Ukraine’s grain stakeholders from the public and private sectors to learn how futures grain trade functions and how government and professional organizations work together in France in the area of grain market regulation. The Ukrainian delegation, headed by Mr Yuriy Louzan, First Deputy Minister of Agricultural Policy of Ukraine, opened the trading day at NYSE Euronext on 7 October and learnt how wheat, corn and rapeseed futures trade work, which price risk hedging tools exist and how financial brokers operate. The physical market of grains in France, standard grain trading contracts and arbitrage was discussed on 8 October in the Syndicat General De la Bourse De Commerce De Paris and Chambre Arbtrale De Paris.
The delegation met with the senior-level management of FranceAgriMer, inter professional organization responsible for implementation of EU policy measures in France, to discussion grain market organization, role of farmers, cooperatives and grain collectors as well as execution of EU grain price intervention and other support mechanisms.
Dmitry Prikhodko from FAO moderated the round table on "Market volatility: how can price risk be managed in Ukraine?” and delivered a presentation focused on grain prices voloatility in Ukraine and international markets.
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