In 2022/23 marketing year (MY), Ukrainian flour millers increased flour exports to 149.7 thsd tonnes, which is 20.1% higher than in the pre-war 2020/2021 MY, when it reached 124.6 thsd tonnes, said Serhiy Serhii Sakirkin.
“That is, in a year when the sea was safe, containers (the cost of which was constantly cried about) of bran were in demand, the overstocking of warehouses could not be imagined even in bad dreams – but only 125 thsd tonnes. And here the sea is only in Romania and further, wild bets on trucks to ports and European consumers… Logistics is a nightmare! And 150 thsd tonnes!” he wrote in the review for APK-Inform analytical agency.
According to the report, in 2021/2022 MY the flour exports were the record low and amounted to 69.8 thsd tonnes. In the current marketing year, the export of Ukrainian flour is expected to reach 180 thsd tonnes, according to the industry association.
Considering the dynamics of flour exports by months, Sakirkin recalled that from March to June 2022, there was an “unclear state of affairs”.
“Then it became clear that we had to work and work in a new way. In July, we squared our shoulders and continued to work almost without disruption. Rare stability in contrast to the previous two years,” the expert said.
According to him, the price of flour last season was influenced by the global price factor and very expensive logistics.
“The terms of delivery, which include payment for transportation, are represented by other prices, but this is not a profit, unfortunately… By the way, the price dynamics of 2022/23 MY, if we do not take absolute figures, is very similar to the dynamics of the pre-war 2020/21 MY,” the expert said.
He emphasized that the war had a significant impact on the geography of Ukrainian flour supplies. Previously, North and Central Africa, especially the UAE, dominated, but now seven out of 10 countries, where the largest volumes of Ukrainian flour were shipped, are European countries.
“Let’s say the usual annual volume is exported to Moldova. But other countries, if they ever got Ukrainian flour, it was in tiny quantities. Now it is thousands, sometimes even tens of thousands of tons,” Sakirkin wrote.
The industry association specified that 33.94 thousand tons of flour were supplied to Moldova, which accounted for 23% of total exports, 22.16 thousand tons (15%) to Poland, 14.7 thousand tons (10%) to Palestine, 14.7 thousand tons (10%) to Romania, and 14.7 thousand tons (10%) to tons (10%), Romania – 12.98 thousand tons (9%), Croatia – 10.77 thousand tons (7%), Hungary – 7.96 thousand tons (5%), Turkey – 7.55 (5%), Israel – 6.87 thousand tons (5%), Slovakia – 6.35 thousand tons (4%) and the Czech Republic – 4.43 thousand tons (3%).
The top ten largest exporters were only producers, including Kalush Milling Company, Novaagro LLC, Khmelnytsky Milling Company, Vinnytsia Milling Company No. 2, Vlad LLC, and others, the Millers of Ukraine Association noted.
