Business news from Ukraine

Business news from Ukraine

China breaks export record in early 2025, imports fall

China’s exports in January-February 2025 reached a record $540 billion, up 2.3% year-on-year, Bloomberg reports. However, the country’s imports unexpectedly fell by 8.4%, leading to a significant trade surplus of $171 billion.

According to analysts, the growth in exports is partly due to accelerated deliveries as Chinese companies seek to circumvent possible new trade barriers from the United States. The U.S. administration is considering additional tariffs on Chinese goods, which could affect the competitiveness of Chinese products.

China remains the largest exporter in the world, supplying products to a wide range of industries. Among the key export products:
Electronics and technology – smartphones, computers, semiconductors.

Machinery – industrial machines, cars and components.
Consumer goods – clothing, footwear, household appliances.

Metals and chemicals – aluminum, steel, plastics.
Renewable energy – solar panels, lithium-ion batteries.

Services – IT development, digital platforms, logistics.
The drop in imports may indicate weak domestic demand, as well as China’s desire to develop self-sufficiency in strategic industries.

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Ukraine and China sign agreement on export of aquatic products and peas

Ukraine and the People’s Republic of China have signed an agreement on the terms of export of Ukrainian aquatic products and peas to China, the press service of the Ministry of Agrarian Policy and Food reports.

“The Ministry of Agrarian Policy continues to work on opening new markets and scaling up existing ones. Today we have signed an important agreement with the People’s Republic of China,” Minister of Agrarian Policy and Food Vitaliy Koval said on Telegram.

According to the report, the agreement will allow Ukrainian farmers to gain access to one of the world’s largest markets, expand their presence in China, and support producers, especially in the fisheries and grain sectors. Ukraine will be able to increase exports and foreign exchange earnings, diversify its markets and integrate into global trade chains.

These agreements are the result of a dialogue between our countries and a series of high-level meetings. It was also the result of active cooperation between the Ministry of Agrarian Policy and Food of Ukraine, the State Service of Ukraine for Food Safety and Consumer Protection, associations, the General Administration of Customs of the People’s Republic of China, and the Chinese Ambassador to Ukraine, Ma Shengkun. I am confident that we have laid a solid foundation for expanding cooperation, as the last time such a contract was signed with China was more than 5 years ago,” the Minister summarized.

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Exports of wheat flour fell by 36% in 7 months

In July-January of 2024-2025 marketing year (MY), Ukraine exported 40.4 thsd tonnes of wheat flour, down 36.1% year-on-year, reports the Association of Millers, citing the State Customs Service.

According to the infographics published in Facebook, the export volumes in the season-24/25 are slightly lower than in the previous seasons – for 7 months of 2023/24 MY Ukraine exported 63.2 thsd tonnes of wheat flour, and in 2022/23 MY – 79.8 thsd tonnes.

At the same time, about 17.0 thsd tonnes were exported to the EU countries, almost 12.4 thsd tonnes – to Moldova, 8.1 thsd tonnes – to Palestine, 1.5 thsd tonnes – to Israel.

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Grain exports from Ukraine decreased to 30 mln tons

As of March 5, Ukraine exported 29.68 mln tonnes of grains and pulses since the beginning of 2024-2025 marketing year (MY, July-2024 – June-2025), of which 490 thsd tonnes were shipped this month, the press service of the Ministry of Agrarian Policy and Food reported, citing the State Customs Service.

According to the report, as of March 8 last year, the total shipments amounted to 30.989 mln tonnes, including 1.319 mln tonnes in March.

At the same time, since the beginning of the current season, Ukraine has exported 12.155 mln tonnes of wheat (12.375 mln tonnes in 2023/24 MY), 2.126 mln tonnes of barley (1.761 mln tonnes), 10.8 thsd tonnes of rye (1 thsd tonnes), and 14.924 mln tonnes of corn (16.569 mln tonnes).

The total export of Ukrainian flour since the beginning of the season as of March 5 is estimated at 49 thsd tonnes (in 2023/24 MY – 74.9 thsd tonnes), including 45.2 thsd tonnes of wheat (71.1 thsd tonnes).

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Trade turnover between Ukraine and Poland amounted to $11.7 bln in 2024, of which $7 bln was Polish exports

Trade between Ukraine and Poland amounted to $11.7 billion in 2024, of which Poland exported almost $7 billion to Ukraine and imported $4.6 billion worth of Ukrainian goods, Minister of Agrarian Policy and Food Vitaliy Koval said following the results of the Polish-Ukrainian dialogue.

According to him, the event was attended by representatives of Polish business, including Orlen and Anwil, with whom they discussed cooperation in the field of fertilizers and bioethanol development.

The minister said that Ukraine imports a total of 1.5 million tons of diesel fuel and gasoline from Poland and $354 million worth of mineral fertilizers.

“All these imports make up a large part of Ukrainian agricultural products. For example, to grow a ton of Ukrainian corn, we need to import 75% of the ingredients. That is, the profitability of international companies, including Polish ones, depends on the success of Ukrainian farmers,” the minister wrote on Telegram.

Koval expressed his belief in the importance of a dialogue between Ukrainian and Polish businesses. It should be based on numbers, cold reason, and mutually beneficial cooperation: the better Ukraine’s agricultural sector develops, the more benefits there will be for the Polish side and vice versa.

Kowal called on Polish businesses to invest in Ukraine’s agro-processing industry, which needs to increase the added value of its products.

“We appreciate the friends who were with us when it was hard, and these friends will be with us when it is easy. And it will be easy soon, because the darkest time is before dawn… We just need to endure. That is why he urged us to find common ground. After all, Ukraine is not a threat, Ukraine is a partner for moving forward,” summarized the Minister of Agrarian Policy.

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Grain exports from Ukraine are crucial for global food security – expert

Ukraine is a strategic partner of the EU and the world. While a significant part of the world’s land is becoming unsuitable for agriculture due to climate change and soil degradation, in Ukraine, with a total area of 60.35 million hectares, 42.73 million hectares or 70.8% of the territory is already used in agricultural production, according to SEEDS.

Dmytro Ustavytskyi, co-founder of the logistics company NIDERA AGRO, an expert in international logistics and innovative solutions, and industry leader of the NGO Svit.UA, writes about this in a blog on the Svit.UA website.

“Despite the realities of the war, grain exports from Ukraine are crucial for the food security of the world. This month, the EU is presenting the updated Common Agricultural Policy of the European Union, which will be adopted in 2028. Currently, it is being discussed that trade preferences introduced in 2022 due to the war should be extended until 2027, as the war continues.

According to the Ministry of Agriculture, in 2024, exports of agricultural products brought in $24.6 billion, which is 59% of the country’s total exports. Ukrainian farmers managed to increase exports by 12.5% compared to 2023. Sales of grains (+1.1 billion USD) and oilseeds (+0.5 billion USD) increased the most,” says Dmytro Ustavytskyi.

In his opinion, logistics in the agricultural sector of Ukraine plays a crucial role in ensuring food security both domestically and in foreign markets.

“Logistics covers the entire supply chain – from the delivery of seeds, fertilizers and machinery to producers to the transportation of crops to storage, processing, domestic markets and export terminals. Efficient logistics helps to minimize crop losses, preserve its quality and ensure competitive prices,” adds the expert on international logistics and innovative solutions.

Challenges of war: infrastructure losses and risks

Russia’s full-scale invasion has shown the critical importance of stable logistics. The destruction of transport infrastructure, blocking of sea routes, destruction of elevators and mining of agricultural land have complicated agricultural processes. However, Ukraine was able to adapt by expanding export routes through the Danube ports and alternative land corridors to the EU.

Export potential: opportunities and constraints

The European Union remains Ukraine’s main trading partner. Ukrainian grain helps to reduce food inflation in the EU.

“However, neighboring countries view the Ukrainian agricultural sector not only as a partner but also as a competitor, which makes it difficult to enter new European markets. Therefore, the issue of extending trade benefits for exporters and solving the problems of blocking borders is a priority.

Ukraine has significant export potential because of its high quality products. For example, the President of the Ukrainian Grain Association (UGA) conducted an audit in the EU and received positive feedback on the quality of Ukrainian grain, which is recognized as one of the best in Europe,” recalls Dmytro Ustavytskyi.

How medium-sized farmers can enter EU markets

“Ukrainian farmers now have the opportunity to sell grain to the EU without customs barriers. For example, a farmer with 500 hectares of land can supply products directly to processors in Italy. And now Ukrainian grain can reach San Martino in Italy in just 2 weeks!

Currently, 90% of Ukrainian grain (wheat and corn) is supplied to Italy, gradually displacing Russian products from the local market. This demonstrates the effectiveness of Ukrainian logistics, which is gradually integrating into the European infrastructure,” emphasizes the co-founder of the logistics company NIDERA AGRO.

Development of logistics infrastructure: the key to competitiveness

According to the expert, his team has now built a complete logistics chain for farmers:

  • Internal logistics in Ukraine
  • Transshipment of grain at the terminal in Chop
  • Formation of export batches (we help to form batches for Italy from 1200 tons)
  • Uniting small farmers on a platform for joint exports

“Today, farmers have a choice – to sell grain on the domestic market or to export on more favorable terms. Transparency of prices on trading platforms allows us to plan sales more efficiently, which reduces logistics costs,” adds Dmytro Ustavytskyi.

Financial opportunities for exporters

According to the expert in international logistics and innovative solutions, farmers have already learned how to work with foreign exchange contracts, which simplifies export operations. Banks have simplified the mechanism for servicing foreign currency accounts, which helps to avoid exchange rate risks.

“However, exports require certification and professional support. We help small producers to go through this process without risks by providing solutions for exporting consignments of 1,800 tons or more. Quality assurance is a key factor in successful exports,” says Dmytro Ustavytskyi.

Trade strategies and training for farmers

One of the common mistakes, the expert believes, is selling grain immediately after harvest, when prices are lowest. In his opinion, it is more profitable to store products and analyze the market to sell at the most favorable time.

In addition, further improvement of agro-logistics is impossible without investment in:

  • Restoration of transportation infrastructure
  • Development of warehouse infrastructure
  • Digitalization and technological innovations
  • Optimization of logistics processes
  • Active international cooperation and support for farmers

“At NGO Svit.UA, we are raising these issues and will be organizing meetings with the Ministry of Agrarian Policy to discuss the possibilities of state support for small and medium-sized farmers in entering international markets.

In times of war, export support for small and medium-sized farmers is becoming a strategically important area for food security and economic development.

Ukrainian producers remain important partners for the EU, so there must be a certain trade culture, because the main requirement of European buyers is honesty in terms of quality and quantity of products,” adds Dmytro Ustavytskyi.

In his opinion, Ukraine has unique opportunities to integrate into the European market even despite the challenges of war. Investments in logistics, digital solutions and international cooperation will help make this process efficient and profitable for Ukrainian farmers.

SEEDS

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