Vladymyr Klymenko: We don’t know where to store harvest of this year

Photo: InterMedia consulting

Author: Sergei Komissarov

The problem is that without the possibility to export the grain Ukraine will be overflowed with this year harvest, president of the Ukrainian grain association Volodymyr Klymenko told in an interview to IMC.

According to specialists, peasants will collect 41.5 million tons of wheat, oats, rye and corn. The problem is what we shall do with 11 million tons of the so-called "transient remainders" of grain left from the last year.

- Volodymyr, is the situation really that bad?

- Situation as in regards grain in Ukraine is more than serious. We really don't like the policy Tymoshenko's government carries out regarding the agrarian complex.

I worked as advisor of vice prime ministers in five previous governments. All those Cabinets had the Coordination council on agriculture. But with the government of Yulia Tymoshenko we did not hold a single meeting!

- It is hard to believe that such urgent question has never been discussed at the governmental level...

- I will tell you...On May 9 the commission on distribution of grain quotas of the Economy Ministry held a meeting. Specialists of the Ministry distributed tons of wheat and barley among domestic companies in accordance with their quotas. And that's it!

Even the very day they chose to hold the meeting - the Day of Victory - says a lot about the style of management.

- To distribute quotas is like to divide up the bearskin before the bear is shot...

- Well, this year we expect good harvest of crops. According to preliminary estimation, we will collect about 41.5 million tons. The problem is what we shall do with 11 million tons of the so-called "transient remainders" of grain left from the last year.

The total capacity of Ukrainian grain elevators makes 30 million tons. 50 million tons of grain cannot be crammed into these 30 million tons. Now add rape and oil-bearing crops, which also must be kept in elevators! Where shall we put all these tons?  

We, members of the Ukrainian grain association, pray for the Cabinet not to think up something like limitation of grain export within the WTO. In this case agrarians will face catastrophic situation

- May be you should knock other doors?

- Friendly speaking, agrarians of Ukraine lost any hope to get any constructive decision from the government. That's why we sent a letter to the President. We asked him to suspend the decree of the cabinet on limitation of grain export. We also asked him to decide the question concerning assignment of means for the Agrarian Fund.

The situation with the export limitation is that having such harvest the Agrarian Fund will not be able to buy anything as we don't have money for this. And we don't have money because the Agrarian Fund did not buy grain in due terms. The circle closed up.

We ask the government to organize the purchase of grain for the Agrarian Fund. It is not we who must do this. It is the function of the government.

- What else did you ask Yushchenko about?

- In our address to the president we pointed out that it is the state which must care about low-income groups.

For example, in US there are 28 million people, who get state ration help.

Low-income groups get bank cards with money for purchasing food only. It is profitable first of all for American agricultural producers, as along with export they have inner market to sell off their products.

We drew Viktor Yushchenko's attention to that similar program might work in Ukraine. The low income groups make 33%. It is the third of the population, which needs state protection.

When food prices increase in the world, it is the state which must react properly to protect its citizens.

The Cabinet of Ministers constantly states that the price rise will continue. They say it is world tendency and Ukraine cannot avoid it.

But let's ask Yulia Tymoshenko whether the government has done anything for its citizens in this situation, except for just talking, and whether the government has adequate reaction to the world threats and challenges.