Ukraine’s grain exports fall to 20% of potential due to logistics constraints
Ukraine exported 899,600 tonnes of agricultural products between August 1 and 18, only 31% of its potential export capacity. Grain exports operated at just 20% of potential due to logistics disruptions, while alternative routes supported limited oilseed shipments and domestic food supplies remained adequate.
Ukraine exported just 899.6 thsd tons of agricultural products between August 1 and 18, equivalent to around 31% of the volume the country could have shipped with full access to export logistics. This was reported by Agriculture and Food Minister Taras Vysotskyi.
The situation is most difficult for grains, with exports currently running at only 20% of their potential level. According to the minister, logistics remain the main constraint, while the availability of agricultural products itself is not an issue.
Alternative routes are helping maintain some exports of oilseeds, but their capacity and economic efficiency are insufficient for large-scale grain shipments. High transportation costs make grain exports through these routes unprofitable in many cases for Ukrainian exporters.
The EU remains one of the markets where Ukraine could increase shipments. Ukrainian corn, in particular, has additional opportunities as its access to the European market is not restricted by import tariffs. At the same time, an expected decline in the EU’s own corn crop could increase the bloc’s demand for imports.
Despite the sharp slowdown in exports and attacks on logistics and production infrastructure, there is no threat of a food shortage on the domestic market. Ukraine’s Agriculture Ministry says existing production capacity is sufficient to cover domestic demand, although consumers could temporarily see a narrower range of some products.
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Source : Ukr Agro Consult
