As of May 24, Ukraine exported 45.402 mln tonnes of grains and pulses since the beginning of 2023/24 marketing year (MY, September 2023 – August 2024), of which 3.997 mln tonnes were shipped in May, the press service of the Ministry of Agrarian Policy of Ukraine reported, citing the State Customs Service.
According to the report, as of the same date last year, the total shipments amounted to 44.593 mln tons, including 2.707 mln tons in May.
In terms of crops, since the beginning of the current season, 16.949 million tons of wheat have been exported (in May, the figure was 1.163 million tons), 2.363 million tons of barley (161 thousand tons), 1.4 thousand tons of rye (0.2 thousand tons), 25.563 million tons of corn (2.662 million tons).
Total exports of Ukrainian flour as of May 24 are significantly lower than last year’s figure (138.9 thousand tons) and are estimated at 90.9 thousand tons (4.3 thousand tons in May), including 85.9 thousand tons of wheat (3.9 thousand tons).
“Solidarity corridors” have allowed Ukraine to export more than 136 million tons of products such as grain, ore and steel since 2022 and import more than 52 million tons of goods, including fuel, vehicles, fertilizers, as well as military and humanitarian aid, pap.pl reports, citing the European Commission.
“In 2022, the EC, in cooperation with Ukraine and Moldova, created the so-called solidarity corridors to improve the operation of EU-Ukraine-Moldova transport routes after Russia’s invasion of Ukraine. These are alternative logistics routes that allow for the transportation of goods by rail, road, and inland waterway. The corridors, created to circumvent Russia’s blockade of Ukrainian grain exports through the Black Sea, now cover trade in all sectors,” the European Commission reminded.
“Solidarity Corridors” allow Ukraine and Moldova to export all types of goods to world markets and ensure the delivery of necessary products to Ukraine, the EC explained. These routes pass through the Danube region, Poland, the Baltic States and the Adriatic region. They complement the Black Sea route created by Ukraine in the fall of 2023.
The European Commission is convinced that the Danube Corridor and the Polish-Baltic Corridor are crucial for all imports, while the Adriatic Sea is of particular importance for Ukraine’s non-agricultural exports.
The European Union and international financial institutions have so far allocated more than EUR 2 billion to these routes. Large-scale projects include EU funding to improve navigation on the Danube and the Sulyn Canal to the Black Sea. River pilots have been trained with EU funds. In addition, information exchange with Ukrainian ports has been improved. This cooperation has helped to increase the safety and capacity of Danube navigation.
“Two years ago, the Solidarity Corridors changed logistics routes in Eastern Europe to support the functioning of the economies of Ukraine and Moldova and prevent a global food crisis. To date, they have brought about EUR 50 billion in revenue to businesses and at the same time strengthened Ukraine’s economic ties with the EU,” said European Commissioner Adina Valian.
In January-April this year, Ukraine increased exports of carbon steel semi-finished products in physical terms by 96.9% year-on-year to 583,229 thousand tons.
According to statistics released by the State Customs Service (SCS) on Friday, exports of carbon steel semi-finished products increased by 82.2% to $288.324 million in monetary terms.
The main exports were made to Bulgaria (37.50% of supplies in monetary terms), Poland (15.84%) and Italy (7.74%).
In January-April 2024, Ukraine imported 5 tons of semi-finished products from Egypt for $5 thousand, while in January-April 2023, it imported 72 tons of semi-finished products from China for $133 thousand.
As reported, in 2023, Ukraine decreased exports of carbon steel semi-finished products in physical terms by 36.7% compared to 2022, to 1 million 203.454 thousand tons, while exports in monetary terms decreased by 48.9% to $608.516 million. The main exports were made to Bulgaria (36.66% of supplies in monetary terms), Poland (23.01%), and Italy (9.60%).
In addition, in 2023, Ukraine imported 96 tons of semi-finished products from China (98.26%) and Turkey (1.74%) for $172 thousand.
In 2022, Ukraine decreased exports of carbon steel semi-finished products by 72% year-on-year to 1 million 899.729 thousand tons in physical terms and by 70.9% in monetary terms to $1 billion 191.279 million. The main exports were made to Bulgaria (26.55% of supplies in monetary terms), Poland (13.97%) and Italy (12.13%).
In 2022, Ukraine imported 5,558 thousand tons of similar products, which is 85.7% less than in 2021. In monetary terms, imports decreased by 86% to $3.634 million. Imports were made from the Russian Federation (96.92% of supplies before the war), China (1.84%), and Romania (1.21%).
The National Association Ukrtsukor has asked the Cabinet of Ministers to urgently establish a zero quota on sugar exports to the European Union for 2024 due to the achievement of the maximum volume stipulated by the EU decision for the export of Ukrainian sugar to these countries in 2024, the association reported on Facebook.
“In fact, we are talking about initiating the closure of Ukraine’s border for sugar exports to the EU as soon as possible due to the fact that sugar exports have already reached 262.6 thousand tons, defined as Ukraine’s quota for 2024,” the statement said.
“Ukrtsukor believes that such an appeal is a confirmation of the constructive position of Ukrainian sugar producers and their readiness to integrate into the European sugar market and meet its requirements.
The business association reminded that on May 13, 2024, the Council of the European Union approved the extension of temporary trade liberalization measures for Ukraine for another year, until June 5, 2025. At the same time, it provided for the application of an emergency braking mechanism for particularly sensitive agricultural products, in particular sugar, if imports of these products in 2024 exceed the average imports recorded in the second half of 2021 and throughout 2022 and 2023. Similar emergency braking measures may be applied in 2025 if, in the period from January 1, 2025 to June 5, 2025, the volume of Ukrainian exports exceeds 5/12 of the quota set for 2024.
From mid-May, the Austrian Ministry of Finance and the Austrian export credit agency OeKB (Oesterreichische Kontrollbank Aktiengesellschaft) will start accepting applications for export and investment insurance in Ukraine at the expense of a special fund for Ukraine created by the Ministry of Finance in OeKB through the budget law.
According to the Austrian agency’s press release, it is expected that EUR500 million will be allocated to cover operations in Ukraine over the next five years, and the attraction of funds from international financial institutions could make it possible to receive up to EUR1 billion.
“Approximately EUR100 million per year is earmarked for new business. This will also open up opportunities for Austrian exporters in the process of Ukraine’s recovery,” the Ministry of Finance said in a release.
It is indicated that as part of the existing and proven export promotion procedure, the Ministry of Finance is already facilitating export transactions worth EUR 3-5 million in Ukraine with payment terms of up to three years through OeKB.
It is noted that since funds are limited and the goal is to achieve a wide diversification of risks, in particular in the supported sectors, small and medium-sized public sector transactions based on a state guarantee will be possible at the first stage.
“This will allow us to make vital investments for Ukraine. These include the supply of drinking water and heat, the provision and rehabilitation of the transport sector with roads, bridges and rail infrastructure, as well as supply agreements and investments such as joint repair shops for buses, trams and trains,” commented Finance Minister Magnus Brunner.
In the first nine months of the 2023-2024 marketing year (MY), Kernel Agro Holding exported 1 million tons of sunflower oil in bulk to almost 30 countries, the company’s press service reported on Facebook.
“We remain the largest agricultural exporter of sunflower oil and are among the TOP-3 total exports of Ukraine,” the statement said.
According to the agroholding, about 50% of the total volume of sunflower oil was supplied to India, 8% to the UAE, 7% to China and Spain, 5% to Italy, and 2% to Iraq, Singapore, Switzerland, Turkey, and Hong Kong.
“To expand the export opportunities of the entire industry, last year we started offering our infrastructure capacities to other agricultural producers in the market. At the company’s terminals in Odesa region, we provide transshipment services for grain crops and vegetable oil,” Kernel said.
In addition, the agricultural holding is completing the construction of one of the largest oil extraction plants in Europe in Starokonstantinov, Khmelnytsky region. Its processing capacity will be 1 million tons of seeds per year.
“This will allow us to increase the export of vegetable oil, a value-added product, and support agricultural producers in the region by providing them with opportunities to sell their products,” the agricultural holding explained.
As reported, Kernel processed 816 thsd tonnes of sunflower seeds in the third quarter of fiscal year (FY) 2024, up 10% year-on-year.
At the same time, sales of sunflower oil in January-March 2024 increased by 44% year-on-year to 394 thsd tonnes, totaling 1,103 thsd tonnes in the first nine months of 2024.
Before the war, Kernel Agro Holding was the world’s leading producer of sunflower oil (approximately 7% of global production) and its exports (approximately 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
Kernel’s net profit for FY2023 amounted to $299 million, while the company ended the previous year with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
In the first half of FY2024, Kernel’s net profit fell 3.6 times compared to the first half of FY2023, to $102 million, and EBITDA halved to $223 million, with revenue down 16% to $1.59 billion.
