Miller Magazine Issue:114 June 2019

UKRAINE 89 JUNE 2019 • domestic consumption, which is determi- ned by: - Population. Because of Crimea annexation and the armed conflict in Donbas millers have lost these markets. As of January 01, 2015 po- pulation of Ukraine decreased to 42.2 million people, which is 6% less than on the same date in 2014 (45.5 million). - Purchasing power of population; - Bakery products price behavior, which inf- luences rationalization of bread share in the overall food pattern; • Increased flour production cost in Ukra- ine, which provoked reduction of enterprises profitability. • demand for flour in the foreign market. Apart from wheat flour, which accounts for a 94% share, Ukraine also produces the fol- lowing types of flour: rye, corn, oats, rice, bu- ckwheat and barley flour. Since 2005 export shipments of wheat flour from Ukraine have been growing. The need for sales growth forced many of the largest Ukrainian companies to start or increase ship- ments of flour to foreign markets. In the 2017/18 season Ukrainian flour exporters set a new record and shipped abroad 430 KMT, but in 2018/19 exports decreased. Only 240 KMT of wheat flour was shipped in July-April compared to 380 KMT during the same period of last year. One of the main rea- sons of export decreasing is declining in flour production (-13% in 2018). Value for money factor is the most attrac- tive for consumers of Ukrainian wheat flour. Countries of Asia, Africa and Middle East be- came the largest buyers of wheat flour from Ukraine. If we consider the largest wheat flour im- porting countries, it should be noted that China took the lead in purchases of Ukrainian flour. China imported 125 KMT of flour in MY 2017/18, or 29% of total Ukrainian exports.