China wants to create an agricultural stock exchange in Ukraine
This was discussed during a working meeting of the President of Ukrainian agrarian Confederation, Deputy Leonid Kozachenko with top managers of International commodity stock exchange of Jilin (JICE).
According to the leaders of JICE, the idea is to create in Ukraine a stock market where it will be possible to sell their products and not only large companies could hedge price risks but also medium-sized farmers. Thus, farmers could make contracts at more favorable price.
«The proposal of JICE is interesting, because now in Ukraine only large companies with production volumes excessing $50 million a year have the opportunity to sell their products on international stock exchanges. The medium-sized companies with volumes, for example, $1 million a year do not have this possibility. That is why such commodity stock exchange could be useful for Ukrainian farmers," — said Leonid Kozachenko.
The problem of medium-sized companies is that they do not have experienced professionals to make futures contracts on international stock exchanges, and they are also unable to form the large export batches, said the President of Ukrainian agrarian Confederation.
«We have agreed with the representatives of JICE to exchange information about how they see the implementation of this project in Ukraine. Ukrainian agrarian Confederation defends the interests of Ukrainian producers, so the process of preliminary negotiations is very important," — said Leonid Kozachenko.