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France and Ukraine work together to grow at the Fifth Ukrainian Grain Congress in Paris, 8-10 September 2014

30/09/2014

The Fifth Ukrainian Grain Congress launched its first round from 8 to 10 September 2014 in Paris, France. A Ukrainian delegation composed of agribusiness executives, representatives of the Ministry of Agrarian Policy and Food of Ukraine, industry associations, non-governmental organizations, and market experts were exposed to the mechanics of French grain markets during the three day meeting. France and Ukraine are two of the top international grain producers and exporters, with the Black Sea region’s potential rapidly growing. The goal of this first round was to establish an ongoing dialogue between the primary stakeholders in the two countries and to share best practices in the sector.

The first two days of the program focused on the world agricultural market, grain price trends, investment opportunities, and the development of export logistics, with an emphasis on France, Ukraine and the European Union. On the first day Ukrainian participants heard from the executives of French agribusiness companies, private banks, and Euronext, the pan-European stock exchange that was also the conference venue, to learn from their experiences and recommendations. On the second day, the Ukrainians presented the current conditions of their grain market with an eye toward prospects and growth opportunities. Day two concluded with a broader discussion on possible collaboration between Ukraine and France in the grain sector and ways to expand Ukraine’s presence on the European Union market. On the third day, theory turned to practice as the Ukrainians visited Groupe Soufflet’s grain terminal at the port of Rouen to observe the grain shipment and flour milling complex first-hand.

The addition of this Paris round was motivated by the active role that French companies such as Groupe Soufflet, Louis Dreyfus and others have played in the Ukrainian grain sector through investment along the value chain and participation in public-private dialogue. Stakeholders from both countries agreed that the grain industry and the Ministry of Agrarian Policy and Food of Ukraine could benefit from an exchange of information and best practices with the French government and private sector. As a result, Groupe Soufflet, Euronext, InVivo Grains – the largest group of agricultural cooperatives in France – and the Ukrainian Grain Association jointly supported this first round of the Ukrainian Grain Congress, which set the stage for continued dialogue at round two, to be held from 25 to 26 November 2014 in Kiev, Ukraine. Round three will take place in March 2015 in Washington, USA.

Since its launch in 2009, the Ukrainian Grain Congress has been a unique opportunity for private and public sector stakeholders to discuss the prospective world grain market outlook, short-term market perspectives, investment opportunities, and ways to improve efficiency. This is the first year that the Congress has been divided into rounds; and the Paris round achieved its goal of building a solid base for improved dialogue on the grain sector between two of the top international grain exporters.

FAO and EBRD are strong supporters of the development of Ukraine’s grain sector through more transparent government policies and increased public-private dialogue. In 2011, following the first Ukrainian Grain Congress, they formed the Ukrainian Grain Sector Working Group to serve as a platform for policy dialogue. Since its formation, the Working Group has met regularly to facilitate grain market transparency and policy predictability, and in 2013, the industry took full ownership of the platform to ensure long-term continued dialogue.

“The public-private dialogue of the Ukraine grain working group has been an effective tool in improving grain market transparency and achieving results on specific sector issues,” said Vladimir Klymenko, President of the Ukrainian Grain Association.

“It has also promoted international investment and cooperation; and the new format of this year’s Ukrainian Grain Congress, which includes expanded interaction with French and American counterparts, is a testament to that.”

The program of the event can be found here: http://www.apk-inform.com/en/conferences/ugc2014/paris/program.