In 2023, Ukraine exported 67.5 million tons of agricultural products, which is 15% more than last year, while export earnings decreased by 8% to $21.9 billion compared to 2022, according to the Ukrainian Agribusiness Club (UCAB).
The business association noted that 2023 was one of the most difficult years in the history of Ukraine’s independence, including in terms of exports.
Among the main obstacles to agricultural exports, the UCAB called the Russian side’s inhibition of the grain corridor, which had been operating since July 2022, and then its termination and blocking of any sea exports. The destruction of the infrastructure of seaports and river ports on the Danube by Russian troops had a significant impact on the export of agricultural products. The agricultural sector was also affected by the ban on exports and transit by neighboring European countries, as well as the blocking of checkpoints on the western border.
The UCAB noted that despite these restrictions, exports of agricultural products increased in physical terms in 2023. Export revenue decreased due to falling prices for almost all types of agricultural products compared to 2022, which was the year of the highest food prices in the world.
The business association warned that the current level of exports is not enough to export the 2023 harvest. If the export volume remains as of the end of 2023, there are risks that Ukraine will have significant carry-over stocks (primarily of grain crops) by the beginning of the next harvest, the UCAB explained.
“Such a situation in the context of low prices on the Ukrainian market for grains and oilseeds, expensive export logistics will further complicate the activities of Ukrainian farmers due to lack of working capital. That is why it is necessary to increase export volumes through all possible channels in order to export the entire harvest before the start of the new season,” summarized UCAB analyst Svitlana Lytvyn.
