Taras Vysotskyi: Ukraine exported 1.4 million tonnes of agricultural products in August – a third of its potential export volume

Between 1 and 26 August, Ukraine exported 1.423 million tonnes of grain, oilseeds and processed products – around a third of the volume it could potentially have exported during this period. Minister of Agrarian Policy and Food of Ukraine Taras Vysotskyi reported the figures during his weekly briefing with the media.

“Between 1 and 26 August, Ukraine exported 822,000 tonnes of grain, around 21% of the potential volume for the period. The remainder consisted mainly of oilseeds, oils and meals, whose export volumes were in line with requirements. Around 600,000 tonnes of agricultural products were transported by rail, with a further 600,000 tonnes shipped via the Danube. Road transport remains the least-used export route, accounting for around 80,000 tonnes, as it is the most expensive form of logistics,” Taras Vysotskyi said.

The Minister also noted that the Government continues to take measures to support farmers affected by the blockade of seaports. In response to longer transport times, the Government and the National Bank of Ukraine have extended the deadline for receiving foreign-currency proceeds from exports of grain, oilseeds and processed products from 120 to 150 days.

However, he said that export restrictions and high logistics costs will affect farmers’ plans for the autumn sowing campaign.

“There will clearly be a reduction in the area sown this autumn, particularly with winter wheat. We do not, however, expect any significant change in the area under winter oilseed rape, as sowing is already under way. Only minor changes are also expected for winter barley. A reduction in the area under wheat poses no threat to domestic food security. Ukraine consumes around 6 million tonnes of wheat domestically, while annual production in recent years has reached 23–25 million tonnes,” the Minister said.

At the same time, the challenging economics of production and high logistics costs may prompt farmers gradually to increase the proportion of oilseeds in their crop mix.

Taras Vysotskyi also noted that lending to the agricultural sector continued to grow despite the difficult logistics situation. Agricultural producers received around UAH 2 billion in loans over the past week. The sector’s total loan portfolio currently stands at UAH 105 billion – UAH 25 billion more than at the same point last year, when it was approximately UAH 80 billion. According to the Minister, this indicates that agricultural producers are making active use of an important source of finance at a time when logistics constraints are increasing their need for working capital.