12:13 21.04.2015

State Food-Grain Corporation looking for schemes to launch 2015 forward campaign

2 min read
State Food-Grain Corporation looking for schemes to launch 2015 forward campaign

Public joint-stock company State Food-Grain Corporation is considering the possibility of launching the forward purchase campaign in spring 2015.

"We're looking and have almost have found a mechanism, which would allow us to work under the program. We've revised the contractor selection procedure, set the criteria and the sums for the programs and plan to support Ukrainian producers," acting Board Chairman Valeriy Tomilenko said in an interview with Interfax-Ukraine.

He said that the previous statements about the company refusing to sign forward contracts are linked to the large debt of farmers owed to the corporation for the previous years.

"We don't have debts to grain suppliers. On the contrary, they have debts – grain and money. We have large debts under forward contracts. Now we're actively working with the debtors and submitting claims to courts. Debts under forward contracts to us total over UAH 250 million," he said.

Tomilenko said that the funds from the Chinese loan will be used in the forward campaign.

In August 2010, the government decided to create the State Food and Grain Corporation of Ukraine. The corporation has a chain of branches, comprised of grain storage facilities, flourmills, fodder factories and a cereals factory. The 53 subdivisions of the corporation can store a total of 3.75 million tonnes of grain, which includes the grain handling capacities of Odesa and Mykolaiv ports of around 2.5 million tonnes of grain cargo per year.

The State Food and Grain Corporation of Ukraine in late 2012 received the first tranche of $1.5 billion from the Export-Import Bank of China. The funds were planned to be allocated to carry out spot and forward purchases of four million tonnes of grain which would be shipped to China.

China National Machinery Industry Complete Engineering Corporation (CMCEC) is the operator under the contract, which was signed for a period of 15 years.

The corporation plans to export 3.5 million tonnes of grain by late 2015 under the Chinese contract.

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