We need to increase the capacity of grain exports by sea and river ports, as well as by "solidarity routes" to at least 4 million tons per month. Currently, this figure is half as much. This was stated by Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council, during a briefing on “Harvest 2023 and Exports of Ukrainian Products” held at Ukrainform.

According to him, despite the war, this year farmers managed to increase the harvest from 50 million tons in 2022 to 70 million tons of grains and oilseeds. However, without the development of export routes in the fall, 20 to 30% of Ukrainian farmers will sow less land or stop working altogether.

"Thanks to the professionalism of Ukrainian farmers who successfully used the weather conditions, this year's harvest prediction has been increased to 70 million tons of grain. And this is despite a 28% reduction in sown areas due to the occupation, hostilities and mining. As of today, we have already harvested 28 million tons of grain. The western regions are still actively harvesting, and the pace of harvesting has slowed down due to rains. Nevertheless, the harvesting campaign of early grains is almost over and the harvesting of spring crops has already started in the south. Also, the south and center of the country have already started harvesting sunflower with yields of 1.8-1.9 tons per hectare. This is a good result. As for oilseeds, we can achieve better results than last year," said Denys Marchuk.

As Ukraine's export capacity increases, these figures will ensure food security both domestically and on foreign markets. In addition, a good harvest and the opportunity to sell grain will send positive signals to farmers for the winter crops. The intention to increase the area is also confirmed by the results of a survey conducted by the Ministry of Agrarian Policy among farmers.

"So far, farmers are positive, but if the sea and river corridors, as well as the 'solidarity routes' do not work at the required pace, we may see 20 to 30% of farmers reduce their sown areas or not work at all due to lack of funds and overcrowded warehouses. However, we have seen how our Armed Forces ensured that the second ship left the port of Odesa outside the grain deal," he emphasized.

As for the work of ports on the Danube, they are limited by constant shelling. After the termination of the grain deal, there have been more than 8 attacks on infrastructure facilities in the ports of Odesa and on the Danube. This resulted in the loss of over 270,000 tons of grain. Prior to the shelling, grain exports from the Danube amounted to 2 million tons of grain per month, with the potential to increase to 3 million tons. Fewer ships are now willing to call at these ports, and those that do are increasing the cost of their services. Trading in such conditions is becoming unprofitable.

"That is why the issue of establishing land corridors remains relevant for us. In August, we managed to increase exports by rail to 300,000-400,000 tons, and by road to 200,000 tons of grain per month. The potential for exporting grain to the west by rail is 1 million tons of grain per month, and by road up to 700 million tons. The import ban imposed by 5 EU countries prevents us from providing these volumes. These issues are purely political and we hope for their early resolution," said Denys Marchuk, Deputy Chairman of the UAC.

In this context, the UAC actively supports and lobbies for the EU to allocate EUR 1 billion in compensation for grain transportation. This can increase exports in this direction to 20 million tons, added Denys Marchuk.

Wednesday, 30 August 2023

 

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