EU: EU to cut 2005-06 barley export due to Ukrainian competition

The EU is likely to cut its barley exports for the 2005-06 marketing year (October-September) by 300,000 tonnes to 3.3 million tonnes due to an expected hike in Ukraine's barley exports, the US Department of Agriculture said in its July grain trade report.

The USDA said the cut was due to 'greater expected Ukrainian competition at prices necessitating larger E.U. export subsidies.'

Ukraine's 2005-06 barley exports are now seen at 4 million tonnes, up 500,000 tonnes from the earlier forecast due to improved production prospects.

The USDA now sees Ukraine's barley output at 8.5 million tonnes this year, up from an earlier estimate of 8.0 million tonnes. But this year's harvest is expected to drop from the 2004 production of 11.1 million tonnes.

Russia is no longer considered to be a big player on the barley export market, as its exports are seen at around 800,000 tonnes, the lowest level in five years and down from around 1 million tonnes in 2004-05.

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