Government updates minimum export price mechanism to support agricultural exports

The Cabinet of Ministers of Ukraine has updated the procedure for approving minimum allowable export prices for grain and oilseed crops. The decision aims to ensure the continuity of agricultural exports under conditions of significantly complicated logistics due to russian shelling of port infrastructure, support Ukrainian producers, and maintain stable foreign currency inflows into Ukraine’s economy.

The resolution stipulates that in August 2026, when determining minimum allowable export prices for certain products, a coefficient of 0.714 will be applied relative to the baseline assessment. This applies to wheat, rye, barley, oats, corn, soybeans, rapeseed, sunflower seeds, as well as sunflower, soybean, and rapeseed oil and certain processed products.

The need for changes was driven by a sharp deterioration in logistics. Due to blocked maritime transport and russian attacks on port infrastructure, transportation costs for agricultural products have increased, export rates have slowed, and domestic purchase prices have fallen. For example, food wheat dropped by 16%, feed wheat by 17%, corn by 8%, barley by 14%, and rapeseed by 5%.

At the same time, grain export volumes decreased. Average daily shipments over the past week fell to 48,000 tonnes, three times lower than in the first half of the month.

Under such conditions, minimum allowable export prices calculated according to previous logistics no longer reflected the real market situation and effectively prevented the signing of some export contracts. The updated mechanism will take into account additional logistics costs caused by the war and ensure the continuity of external supplies of Ukrainian agricultural products.

"Agricultural exports remain one of the key sources of foreign currency inflows and the foundation of Ukraine’s economic resilience. Despite russia’s targeted attacks on port infrastructure and significant logistical complications, the state is responding quickly to new challenges. The adopted changes will allow the mechanism of minimum allowable export prices to be adapted to the real market situation, ensure uninterrupted exports, support Ukrainian agricultural producers during the harvest, and maintain stable foreign currency revenues for the country," said Minister of Agrarian Policy and Food of Ukraine Taras Vysotskyi.