News / Europe

During Drought China Turns to Ukraine as Food Source

During Drought China Turns to Ukraine as Food Sourcei
|| 0:00:00
X
James Brooke
July 28, 2012 7:49 PM
The worst drought in half a century is hitting corn and wheat harvests in the United States, the world’s largest food exporter. So China, a major food importer, is turning to a new source of supply -- Ukraine, a nation once known as the breadbasket of Europe. James Booke reports from Ukraine for VOA.

During Drought China Turns to Ukraine as Food Source

James Brooke
LOKHVITSA, Ukraine The worst drought in half a century is hitting corn and wheat harvests in the United States, the world’s largest food exporter.  So China, a major food importer, is turning to a new source of supply - Ukraine, a nation once known as the breadbasket of Europe.

The drought in the United States reinforces expert forecasts that world food supplies will steadily tighten this decade, and that prices will rise.  When grain prices go up, so do the prices of bread, milk, eggs and meat.  When that happened two years ago, riots broke out in Egypt and Mozambique.

By 2050, the world will have to produce 60 percent more food to meet demands from a world population that is expected to be bigger and richer.

In advance, China is reaching out to producers around the globe to guarantee future food supplies.

A century ago, rich corn and wheat harvests made Ukraine the breadbasket of Europe.
Now China wants to lock down a portion of the bounty flowing from the black soils of this farming nation the size of France.

Galyna Kovtok is CEO of UkrLand Farming, or ULF, Ukraine’s largest agri-business.  With more than half-a-million hectares of farmland under cultivation, she negotiated a $4 billion Chinese credit this year for her company.

“This year, UkrLand Farming may become the first company in Ukraine to send agricultural products to China because at this moment, we are actively working to get certified to export to China,” she said. “The first step will be corn, and then we will work on sending other goods.”

When ULF exports corn to China, it will make Ukraine the first country outside the Americas to do so.  And with China's population becoming larger, and richer, China is on track to overtake Japan as the world's largest corn importer.

In Lokhvitsa, a three-hour drive east of Kyiv, Chinese money is financing construction of six grain elevators.  Building for the Chinese market, ULF will soon have almost two million tons of elevator storage capacity.

At the elevators, and in the fields, the equipment is largely American.  In a wheat field, a fleet of four half-million-dollar John Deere combines is harvesting and threshing.

With investments like these, ULF grain yields per acre are now halfway between Ukrainian averages and the high yields of the American Midwest.  But, just as in the United States, farming depends on the weather.

Across the Black Sea region - in Ukraine, Russia and Kazakhstan - drought this year is pushing harvests down by 15 to 20 percent.  Yuri Scherbak, the ULF manager in Ukraine, predicts that his own corn and wheat crops will be down by about 15 percent.

“This year, unfortunately, we are expecting a bit of a drop in production,” he said.  “And the main reason, while we are in a period of drought, is the decrease in quantity of precipitation."

Traditionally, the Black Sea region is the main source of wheat for North Africa and the Middle East.

But this year, on the supply side, Russia may have to suspend exports.  And on the demand side, Africa and the Middle East are now competing with China.

Austin Malloy contributed to this story

You May Like

Karzai's Legacy: Missed Opportunities?

Afghanistan's president leaves behind a much different nation than the one he inherited, yet his legacy from 13 years in power is getting mixed reviews More

Frustrated, Liberian Students Want Ebola Fight Role

Thousands have volunteered to go to counties, rural villages to talk to people in their language about deadly virus More

Secret Service Head to be Questioned Over White House Intruder

Julia Pierson will be questioned about the latest break-in well as several other embarrassing incidents involving the agency More

This forum has been closed.
Comment Sorting
Comments
     
by: Yoshi from: Sapporo
July 31, 2012 4:40 AM
Food war might happen midst worldwide severe drought and a famine!?


by: John
July 30, 2012 6:27 PM
I hope this investment continues. The food will obviously be needed in the long-term if not the short. Perhaps it can be used to feed the insects the futureologists say we'll all be eating in 2050!!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Treasure Hunters Seek 'Hidden Treasure' in Central Kenyai
X
Gabe Joselow
September 29, 2014 6:20 PM
Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Iran's Rouhani Skeptical on Syria Strikes

Iranian President Hassan Rouhani expressed skepticism Friday that U.S.-led airstrikes in Iraq and Syria could crush Islamic State militants. From New York, VOA’s Margaret Besheer reports the president was also hopeful that questions about Iran’s nuclear program could be resolved soon.
Video

Video US House Speaker: Congress Should Debate Authorization Against IS

As wave after wave of U.S. airstrikes target Islamic State militants, the speaker of the Republican-controlled House of Representatives says he would be willing to call Congress back into session to debate a formal, broad authorization for the use of military force. VOA’s Michael Bowman reports from Washington, where legislators left town 10 days ago for a seven-week recess.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Video

Video Ebola Robs Liberians of Chance to Say Good-Bye to Loved Ones

In Liberia, where Ebola has killed more than 1,500 people, authorities have worked hard to convince people to allow specialized burial teams to take away dead bodies. But these safety measures, while necessary, make it hard for people to say good bye to their loved ones. VOA's Anne Look reports on the tragedy from Liberia.
Video

Video Reconstruction? What Reconstruction? Life After War in Gaza

It’s been a month since Israel and the Palestinians agreed to a ceasefire to end 52 days of an air and tank war that left 60,000 homes in Gaza damaged or destroyed and 110,000 homeless. Sharon Behn reports that lack of reconstruction is leading to despair.
Video

Video US, Saudi Arabia and UAE Hit Islamic State's Oil Revenue

The United States, Saudi Arabia and the United Arab Emirates have bombed oil facilities operated by Islamic State militants in Syria. It was a truly collaborative effort, with the two Arab countries dropping the majority of the bombs. The 12 refineries targeted were estimated to generate as much as $2 million per day for the terrorist group. VOA Pentagon correspondent Carla Babb has the story.
Video

Video Russia's Food Sanctions Raise Price Worries, Hopes for Domestic Production

Russia retaliated against Western sanctions imposed for its actions in Ukraine by halting food imports from the West. The temporary import ban on food from Australia, the European Union, Norway and North America has Russian consumers concerned that they could face a sharp increase in food prices. But in an ironic twist, the restrictions aimed at the Kremlin have made Russia's domestic food producers hopeful this can boost their business. VOA's Daniel Schearf reports from Moscow.
Video

Video Washington to Pyongyang: 'Shut This Evil System Down'

U.S. Secretary of State John Kerry is calling on North Korea to shut down prison camps and other human rights abuses following a United Nations Commission of Inquiry into "widespread and systematic human rights violations." VOA State Department Correspondent Scott Stearns reports from the United Nations.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid