Exports of agricultural products from Ukraine in March 2023 increased by 12% compared to the previous month and reached a record 7.8 million tons since the war, the Ukrainian Confederation of Agrarian Business (UCAB) said in a statement on its website.
“51% of exports in March 2023 were made through the work of the “grain corridor”, and the rest through alternative export routes. However, it is necessary to take into account that not all products had time to physically cross the border,” UCAB pointed out.
According to the data of UCAB, in March 2023, vegetable oils showed the largest increase in the structure of exports – by 28%, to 556.2 thousand tons, oilseeds – by 23%, to 683.1 thousand tons, cereals – by 10%, to 5.7 million tons (corn – 67%, wheat – 29%, barley – 4%) and oilcake – by 10%, to 454.7 thousand tons (sunflower – 83%, soybean oil – 17%).
According to analysts, the important news for the Ukrainian export in March 2023 was the continuation of the “grain corridor”.
“The existence of such an export channel gives hope to Ukrainian agrarians to realize the rest of products of the 2022 harvest and receive funds to continue their economic activities, beginning from the spring sowing season, which is already in full swing”, – the UCAB noted.
The main problem is the significant gap between the world price and the price of major crops on the Ukrainian market. Reducing of this gap would help farmers to accumulate funds for the purchase of fertilizers, pesticides, the use of which will be minimal this year due to limited financial resources of farmers, UCAB summarized.
Ukraine managed to export 265 thousand tons of sugar in 7 months of the current marketing year (MY, September 2022 – August 2023), which is 4.8 times more than in the entire 2021-2022 marketing year, said Nazar Mykhailovyn, acting Chairman of the Board of the National Association of Sugar Producers of Ukraine Ukrtsukor.
“For the entire period of 2021/2022 MY, 55 thousand tons of sugar were exported. From September 1, 2022, to March 28, 2023, Ukraine increased exports by 4.8 times to 265 thousand tons,” he said in an interview with Interfax-Ukraine.
According to Mikhailovin, in 2022, 23 Ukrainian sugar factories produced 1.33 million tons of sugar, while a year earlier 33 enterprises produced 1.45 million tons. “The reduction in sugar production by 120 thousand tons with 30% of production capacities not used was not critical for Ukraine. In addition, we had a surplus and significant carry-over balances from 2021/2022 MY in the amount of 491 thousand tons,” the head of the association said.
He reminded that as of the beginning of the war, sugar exports from Ukraine were suspended due to the hostilities. On June 5, 2022, the Cabinet of Ministers adopted a resolution to allow sugar exports under licenses issued by the Ministry of Economy. Due to the hostilities and the lack of seaports, Ukraine was forced to change the geography of exports. According to the European Union’s decision, Ukraine can ship sugar to Europe without tariff quotas and duties.
According to Mykhailovyn, due to drought and poor sugar beet harvest, as well as higher natural gas prices than in Ukraine, Europe produced less sugar, and it was more expensive than Ukrainian sugar. “Ukraine was able to sell sugar in Europe at a decent price,” he stated.
Export of Ukraine by countries in Jan-Nov 2022
Source: Open4Business.com.ua and experts.news
Export changes in % to previous period in 2021-2022
Source: Open4Business.com.ua and experts.news
Export of goods in Jan-Nov 2022 to most important positions and in relation to same period of 2021
Source: Open4Business.com.ua and experts.news
Terra Food, a large Ukrainian dairy producer, increased its export revenues in 2022 by 15% up to $41 mn, the company’s export director Maxim Voytovych said at the Exporters Summit organized by Forbes Ukraine.
According to him, the sales increase was possible due to the diversification of the export portfolio and flexibility with which the company reacts to the changes in the consumer sentiment in Europe.
He pointed out that the headliner of the company’s sales in Poland was a vegan analogue of the butter TM NATURALE. The company also launched this brand on the Baltic, Bulgarian and Hungarian markets and plans to supply Germany.
The B2C segment now accounts for 60% of Terra Food’s export portfolio, and the rest is B2B.
The company is also beginning a major expansion into the Chinese market, which it postponed because of full-scale Russian aggression.
“In March 2022 we were planning a large-scale expansion into China. We postponed that case because of the war, but we will launch that project in the near future. If you want to enter China, you can’t do it on the phone – you have to be present there, work with distributors,” Voytovich said, noting that a feature of the Chinese market is “risk aversion.”
Terra Food (TM “Ferma”, Premialle, “Tulchinka”, “Bila Line”) produces products in Ukraine at five companies.
