Cargill is pulling back from the Ukrainian grain market because of the state’s failure to pay a VAT refund.
Vadim Miroshnichenko, head of the commercial department of Cargill Ukraine, said that, while the company has not stopped buying grain in the market, it will purchase four times less grain this year than last year.
“The company has not stopped buying of grain, however its price remains non-competitive. This year we will export only 300 thousand tons of grain,” he said.
The amount of the state’s debt has not yet been disclosed, but according to the Ukrainian analysts it reaches UAH1bn (US$130m) .
Cargill has already said that the reduction of activity relates only to grain – its investments in processing oil plants will remain at the same level.
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Analyst believe that Cargill’s decision to leave the Ukrainian grain market will lead to strengthening positions of other exporters, such as Alfred C. Toepfer, Serna, Bunge Ukraine, Kernel.
