Mr. Brody, head of Khlibinvestbud announced plans to create a 1 million hectare farm. Mr Brody made this announcement on behalf of Zerno Ukrainy, which theoretically, as the successor of bankrupt Khlib Ukrainy, owns 25% of Khlibinvestbud.

Mr. Brody said that the company he runs will not be involved in the new giant farm. However Mr. Brody was quick to point out that export quota’s need to remain in place until the end of the second quarter this year. His argument is that 2.5 million tons of grain in storage is owned by foreign companies, who would likely sell it immediately. Mr. Brody also said that the real price for wheat should be in the range of $475 to $500. However his company is paying only $200 and as it is the only company doing exports, is the only real buyer in Ukraine.

Two questions immediately arise from Mr. Brody’s latest comments. Why is the government planning to go back to farming? And where is the money going from the export of Ukrainian wheat.

UkrAgroConsult