Ukraine’s agrarian sector exports in July 2023 decreased by 29% year-on-year to 3.7 million tons due to the inability of transport to cross the border due to queues, the Ukrainian Club of Agrarian Business (UCAB) reported.
“The disappointing export results are primarily due to the stoppage of the “grain corridor” on July 18, as well as its low activity even before the termination. In July 2023, only 292 thousand tons (of agro-products – IF-U) were exported through this channel. Also, Russia’s shelling of the infrastructure of the Danube river ports had a negative impact on export volumes,” the report says.
In the structure of agricultural exports in July compared to June, UCAB analysts noted a 40% reduction in the export of grain crops (2.3 million tons), where corn accounted for 51% of supplies, wheat – 36%, barley – 13%.
A 12% drop in the index was also shown by cakes extracted in the production of vegetable oils: 320.7 thousand tons of them were exported in July. The share of sunflower cake accounted for 91%, soybean cake – 9%.
At the same time, analysts noted a 37% increase in exports of oilseeds – up to 330 thousand tons. Rapeseed accounted for 73%, soybeans – 23%, sunflower seeds – 3%.
According to UCAB data, the export of vegetable oils also showed positive dynamics – 549.4 thousand tons, which is 7% higher than in June. The share of sunflower oil amounted to 92%, rapeseed and soybean oil – 4% each.
“The biggest drop in export volumes was demonstrated by the positions having significant weight at their relatively low value. They were mainly exported within the framework of the Black Sea Grain Initiative. These are grain crops and oilcakes,” the business association emphasized.
Analysts explained the growth of oilseeds export volume by the beginning of harvest and the start of its export from the country.
“The lack of export opportunities through seaports, the destruction of the infrastructure of seaports of the Odessa region and river ports of the Danube, the risk of a continued ban on imports of a number of Ukrainian agro-industrial products in neighboring EU countries will have a very negative impact on our future exports. We will be able to export products not when the world needs them, but when we have the opportunity to do so, and with significantly higher logistics costs,” the UCAB summarized, while emphasizing that resumption of free navigation is necessary both for Ukraine and the world.
