Constant "wobbles" from Russia’s side regarding the "grain agreement" always cause significant fluctuations in exchange prices for grain, which is bad for Ukrainian agricultural producers. This was stated by the Deputy Chairman of the Ukrainian Agri Council Denis Marchuk on the air of the telethon.

"Before the full-scale invasion, Ukraine exported about 70% - 90% of its food through sea ports. During the first 120 days of the "grain agreement", Ukraine shipped 11 million tons of food, that's about 450 ships. This means that 60% of the agricultural export was realized thanks to the ports of Great Odesa. Of course, the extension of the "grain agreement" for 120 days embodies the hope that Ukraine will receive funds from exports, and farmers will receive funds to plan their economic activities. Therefore, the extension for the indefinite period would be more profitable and stable in the context of preparation for the future sowing campaign", - said Denys Marchuk.

He added that immediately after the full-scale invasion, Ukrainian logistics chains were destroyed. Farmers could not sell their harvest. Because of this, some farms stopped working, others reduced the winter crops area.

Also, in order to increase export opportunities, it is important to include Mykolaiv ports in the "grain agreement".  

"Before the war, Mykolaiv port exported up to 30% of grain.Today, its unblocking would give about 1 million tons of grain export every month. As for the safety of ships, the key factor here has always been our Armed Forces and diplomats. Until the Armed Forces of Ukraine created a corridor to the Odessa ports, everyone said that security could not be guaranteed. When we can ensure safe passage, all our partners, such as Turkey and the UN, know that Ukraine keeps its word. And the liberation of a part of the Kherson region gives optimism that the port of Mykolaiv can be included in the "grain agreement", Denys Marchuk stressed.

Also, according to Denys Marchuk, this year's harvest will be significantly smaller than last year's.

"The war has become the biggest problem for farmers this year. A significant amount of land is occupied, many territories were affected by hostilities. Farms in the east, north and south suffer from field mines. This season we will have about 50% of last year's harvest. Although the previous harvest was a record for Ukraine, we collected more than 100 million tons of grain. Therefore, the volume of this year's harvest guarantees export opportunities for Ukraine, as well as food security", - added the Deputy Chairman of the UAC, Denys Marchuk.

Friday, 18 November 2022

 

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