Ukraine Exported 2.4 Million Metric Tons of Agricultural Products in September

Whilst Ukraine exported 2.4 million tonnes of agricultural produce in September, this figure represented just 46 per cent of the country’s potential export volume under current conditions. Taras Vysotskyi, Ukraine’s Minister for Agricultural Policy and Food, stated during a weekly press conference that the lack of full access to Black Sea ports constitutes a decisive constraint on the country’s export capacity.

Cereals accounted for 1.4 million tonnes of total exports in September. Whilst this figure represents 38 per cent of the potential cereal export volume, oilseed exports reached 444,000 tonnes, equivalent to 83 per cent of the potential volume. During the same period, 311,000 tonnes of vegetable oil and 280,000 tonnes of oilseed meal were exported; exports in these product groups accounted for 64 per cent and 46 per cent, respectively, of the potential volumes.

Danube Ports Became the Main Export Route

The breakdown of exports by mode of transport also highlighted Ukraine’s dependence on alternative logistics routes. Of the 2.4 million tonnes of agricultural products exported in September, 1.3 million tonnes were transported via the Danube ports, accounting for 54 per cent of total exports. The railways accounted for 993,000 tonnes (41 per cent), whilst road transport remained at 120,000 tonnes (5 per cent).

Vysotskyi stated that, as long as full access to the Black Sea ports cannot be secured, Ukraine faces an upper limit of 45–50 per cent on its agricultural exports. He emphasised the need to safeguard alternative routes and increase their capacity, as well as to develop solutions—in collaboration with European partners—to cover the additional logistics costs.

In this context, Ukraine has submitted a proposal to the European Union calling for the allocation of at least 1.1 billion euros to offset the additional logistics costs. It is reported that, should this proposal—based on additional logistics costs calculated at approximately 50 euros per tonne—be accepted, Ukraine could increase its agricultural exports to as much as 20 million tonnes. The Ukrainian side is awaiting the EU’s response to its proposal.

In addition to export logistics, storage capacity remains one of the key challenges facing Ukraine’s agricultural sector. Vysotskyi revealed that, due to limited post-harvest storage capacity, the country requires approximately 11 million tonnes of additional storage space.

To meet this need, support totalling over 17.5 million dollars has been secured from international partners; it is planned that the grain storage silos purchased with these funds will be distributed free of charge to farmers operating in frontline regions. Distribution of the support, which will be available to producers with land holdings ranging from 100 to 3,000 hectares, is expected to begin in October.

In addition, the Ministry of Agricultural Policy and Food is working on a scheme whereby a $25 million fund provided by the World Bank will cover up to 80 per cent of the cost of grain storage bags purchased by farmers using their own resources. Whilst this scheme is planned to cover producers with between 100 and 7,000 hectares of land, as well as farmers in frontline regions with between 3,000 and 7,000 hectares, the maximum support available per cover will be 23,000 Ukrainian hryvnias.

Access to the EU Market on the Agenda

In Ukraine’s negotiations with the European Union, access to the EU market for agricultural products, alongside logistics costs, has been raised. During the latest talks in Brussels, Ukraine and the European Commission discussed changes to the management mechanism for tariff quotas on dairy products and flour, as well as opportunities for Ukraine to increase its exports of bioethanol to the EU.

Whilst the addition of 7 per cent bioethanol to petrol has become mandatory in Ukraine from 1 July, due to the war, a portion of the petrol used in the country’s domestic market is imported from EU countries in a bioethanol-blended form. According to Ukrainian authorities, these imports mean that an average of 10,000 tonnes of bioethanol enters the country each month, with annual imports reaching approximately 120,000 tonnes.

Ukraine is requesting that these volumes be taken into account in its bioethanol exports to the EU and that an additional quota be allocated on top of the existing 125,000-tonne export quota.

Data for September indicates that, alongside access to Black Sea ports, the capacity of alternative logistics routes, storage infrastructure and access to the European Union market will continue to be decisive factors for Ukraine’s agricultural exports in the coming period.