Buckwheat from China arrives at Ukrainian retail chains
Kyiv, May 11 (Interfax-Ukraine) – The first buckwheat Ukraine imported from China in late April has started to appear on the shelves of retail chains, director general of Khlib Investbud Ltd., Robert Brovdi has said.
"Some of the buckwheat today is in the retail chains," he said at a press conference at Interfax-Ukraine on Wednesday.
He said that currently buckwheat is sold in the Tavria-V, Silpo, Virtus and ATB chains. In addition, he said that talks on the sale of Chinese buckwheat to the Furshet and Velyka Kyshenia chains are underway.
He expressed confidence that buckwheat imported to the country would be sold in two or three weeks.
"No preconditions for the product remaining unsold exist," he said.
Brovdi also said that the contract signed on February 21, 2011 with China foresees imports of 4,000 tonnes of buckwheat. Imports of 2,000 tonnes are secured, and the rest of buckwheat will be imported if the necessity appears. A total of 816 tonnes in batches (on April 25 and May 4) has arrived in Ukraine. The next shipments are scheduled for early June 2011.
Brovdi said that Chinese buckwheat is bought by Khlib Investbud using only its own circulating funds of $4 million, and its will not be put into the state reserve or state intervention fund.
He also said that Khlib Investbud bought the Chinese buckwheat on FOB conditions at $1,630 per tonne, and taking into account buckwheat delivery and all payments, the price is $2,097 per tonne, or around UAH 16.70 per kilogram. He said that taking into account state price regulation, the retail price of Chinese buckwheat cannot exceed UAH 17.99 per kilogram. Brovdi said that Khlib Investbud is selling the Chinese buckwheat at UAH 16.06 per kilogram.
The losses of the company on the sale of Chinese buckwheat amount to $97 per tonne," he said.