Nibulon” JV LLC (Mykolaiv), one of the largest operators at the grain market of Ukraine, in January-June 2023 transported by its own fleet from the branch “Bessarabskaya” (Izmail) to Constanta, Romania about 80 thousand tons, or 15% of the total shipments of the company during this period.
According to the grain trader’s website, this was made possible by the redeployment of the fleet from Nikolaev, which involved disassembly of the vessels, their transportation by land to the Danube and their subsequent reassembly at the Bessarabian branch. In total two port tugs “Nibulon-12” and “Nibulon-14”, tugs “Nibulon-3” and “Nibulon-11” and two handling machines Terex Fuch mhl 385 were transported this way.
The announcement indicates that the Nibulon also began providing tug, mooring and unmooring services for vessels on the Danube. In January-June 2023, the number of hours worked in this way increased 18-fold.
“In the spring, Nibulon was able to resume shipping on the Middle Dnieper. Now tugs “Nibulon-10”, “Hermes-2” and non-self-propelled barges UAK-1, UAK-2, UAK-3, UAK-4 work here, and the branch “Kremenchugskaya” acts as a central transshipment hub that receives grain from water transport and reloads it into the cars”, – stressed the press service of grain trader and added that during April and May 2023 more than 15 thousand tons of grain were transported this way.
It is noted that the shipping company of the grain trader plans to increase the volume of services to third parties in Ismail, as well as to increase the volume of traffic to Constanta by optimizing the routes.
“The experience of sea routes in winter and spring allows the company to choose exactly sea routes instead of the Danube, which affects the speed of the fleet,” summarized the “Nibulon”.
JV Nibulon LLC was founded in 1991. Before the Russian military invasion, grain trader had 27 transshipment terminals and complexes to receive the crops, the capacity for one-time storage of 2.25 million tons of agro products, a fleet of 83 ships (including 23 tugs) and owned the Nikolayev shipyard.
“Nibulon” before the war worked 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
The grain trader exported a maximum of 5.64 million tons of agricultural products in 2021, reaching a record volume of deliveries to foreign markets in August – 0.7 million tons, the fourth quarter – 1.88 million tons and in the second half of the year – 3.71 million tons.
Minister of Agriculture and Rural Development of Romania Florin Barbu intends to ask the European Commission to extend restrictions on imports of agricultural products from Ukraine until the end of the year and expand the list of banned for the import of agricultural products.
“The ban is valid until September 15. I will hold a discussion with my colleagues from other countries, and we will ask for an extension until December 31. In addition to rapeseed, wheat, corn, sunflower, I will try to add up to 10 more products,” Euractiv quoted Barbu as saying in the Romanian Parliament on Wednesday.
He said the list of import bans could include honey and meat, as well as “other Romanian priorities so that farmers can sell local products.”
As reported, the EU ban on imports of wheat, corn, rapeseed and sunflowers from Ukraine came into force on May 2 and replaced unilateral decisions to ban imports by countries bordering Ukraine, particularly Poland, Bulgaria, Hungary and Slovakia, in violation of the Association Agreement and EU internal regulations as of April 28.
As noted by the EU, Bulgaria, Hungary, Poland and Slovakia undertook to cancel unilateral measures on these and all other types of agricultural products originating from Ukraine, as well as to allow free transit.
On June 5, the European Commission extended until September 15 restrictions on imports of wheat, corn, rapeseed and sunflower seeds from Ukraine to Bulgaria, Hungary, Poland, Romania and Slovakia, considering that the problems provoked by such imports have not yet been overcome. The new regulations do not allow these grains and oilseeds to be supplied to the markets of these countries under contracts concluded before May 2.
Romania was the only one of the five frontline countries that did not impose a ban on imports of Ukrainian agricultural products before the official decision of the European Commission.
JSC “Ukrzaliznytsia” (UZ) in May 2023 transported 1836 thousand tons of grain cargo, which is 33% less than a month earlier, said deputy director of the department of commercial work UZ Valery Tkachev at a meeting with representatives of agrarian business on Thursday.
According to his information 1147 thousand tons of grain cargo were sent for export last month, which is 46% less than in April. In domestic communication 683 thousand tons were transported, which is 16% less than in April. Average daily loading in May was 44 thousand tons.
“Two factors influenced the reduction of transportation – the blocking by the aggressor of the “grain corridor”, which affected the delivery of goods by rail to ports, as well as the blocking of exports through “solidarity corridors” by European countries, which led to a halving of cargo handling through the western borders of Ukraine”, – explained Tkachev.
He added that UZ is ready to increase transportation, for which it has sufficient resources.
According to the operational data of UZ, in the first week of June 2023 the volume of grain cargo loading was 380 thousand tons, or 15% of the total cargo. Average daily volumes of transshipment during this period amounted to 54 thousand tons, which is 2.2 times higher than in April.
According to Tkachev, the actual average daily volume of agricultural cargo transshipment through the border crossings in June 2023 increased by 90 cars compared to May. Grain cargo increased by eight cars per day.
A UZ representative said that 9,740 railcars, of which 1,084 railcars with grain cargoes, are heading toward the western border. The queue for agricultural commodities has decreased by 343 cars (24%).
“Wagon congestion is ‘dissipating,’ thanks to the balancing of border loads. As long as the grain corridor works, the load on the western borders is reduced. Also transfer through European countries became more active”, – UZ representative explained.
Speaking about the transshipment of grain at the Ukrainian-Polish border, Tkachev said that in May at the checkpoint “Yagodin-Dorohusk” average daily passed 17.3 cars with grain, crossing “Izov-Grubeshov” – 20 per day, crossing “Mostiska-Medica” – 22.13 per day. At the Romanian BCP “Vadul-Siret-Dornesti” average was 47.7 w/c with grain, BCP “Dyakovo-Halmeu” – 8.5 w/c.
At the Ukrainian-Hungarian border, grain cargo transshipment in May at BCP “Chop-Zakhon” was 39.5 per/c, at BCP “Bat’ovo-Betereshki” in May transshipment of 25.6 per/c was recorded, the maximum rate in May – 93.9 per/c.
“For all Western BCPs, if we analyze the statistics of the last five months, there is a sagging of shipments from one and a half to five times. The remaining restrictions on exports with the permission of transit significantly affect the export of grain through the western borders,” – summarized Tkachev.
The head of UZ reported that, as of June 8, 2023 in the direction of the ports of Greater Odessa moves 2663 railcars with grain cargo. The average daily unloading in June is 493 cars with grain. Unloading waiting time (queue) is 4.9 days.
As of June 8, 1,656 railcars with grain cargo are bound for Port Ismail. Since May 29, the queue decreased by 23.48%. The average daily unloading for June was 122 grain cars. Unloading waiting time (queue) reaches 11.3 days.
“The work of the “grain corridor” today is difficult to predict, the aggressor country constantly changes the number of inspections of ships and puts forward different requirements, in addition the work of the port “Southern” is blocked. The situation in the port of Izmail remains difficult because of the large accumulation of cars. Loading in the port direction is planned taking into account the processing capacity of consignees/operators, but due to weather conditions they unload significantly less than planned volume,” UZ noted.
Ukrainian Agribusiness Club (UCAB) considers the continuation of the restrictive measures on import of wheat, corn, rapeseed and sunflower from Ukraine to Poland, Hungary, Slovakia, Romania and Bulgaria discriminatory and groundless and insists on the cancellation of this decision.
“Such prolongation will neither solve the problems of local markets nor improve the situation of local farmers,” said a statement published on the UCAB website on Monday.
The business association believes that the resolution prepared by the EU on the prohibition of the import of agricultural products from Ukraine to five neighboring EU countries, according to which the restrictions will be in force until September 15 this year, will have a negative impact on the economic recovery of Ukrainian farmers during the war.
Such decisions should be taken only after detailed studies and consultations with all EU member states because according to the latest data, some neighboring EU member states, such as Poland, were able to increase their export potential and domestic processing by importing cheaper Ukrainian agricultural products and improve their positions in livestock and finished products, the UCAB reminded.
The business association noted the negative influence of such a decision on the situation with sabotage of the “grain agreement” by Russia. “According to preliminary forecasts, the current steps to prohibit the import of Ukrainian agricultural products to the EU may deepen the blackmailing of the Russians regarding the operation of the grain corridor,” the UCAB said.
Experts of business-association emphasized that Ukraine will have less export potential in 2023 season: export of grains and oilseeds from Ukraine is forecasted to decrease by one third to 46 million tons per year.
Existing trade restrictions on Ukrainian agricultural products in five countries of the EU should be abolished. At the same time, it is worth conducting an open constructive dialogue between representatives of the Ukrainian and European agro-communities in order to find compromises, which will help both the EU and Ukraine to become stronger, summed up in UCAB.
The ban on the export of wheat, barley, rapeseed and sunflower seeds from Ukraine to Poland, Hungary, Slovakia, Romania and Bulgaria, imposed on May 2 for the period until June 5, will be extended until September 15, the Polish Minister of Agriculture and Rural Development Robert Telusz said.
“It (the relevant regulation) has not yet been approved or published, but we have information that the European Commission has extended the ban on imports of wheat, corn, rapeseed and sunflower from Ukraine until mid-September 2023,” the minister was quoted by the press service of the Polish agency on Monday evening.
According to Telusz, if the information about the ban on imports is confirmed, as of tomorrow, Poland will not be able to receive grain on contracts concluded before May 2, 2023.
Polish minister also said that negotiations with the so-called Eastern European border countries and the European Commission will continue. They will discuss the prospect of further extending the ban on the import of Ukrainian grain to these countries after September 15, 2023.
The Polish Agriculture Ministry said that the ban can be made more flexible taking into account the specifics of individual countries.
Speaking about grain exports, Telusz said 1.054 million tons of grain were exported from Poland in March, 1.152 million tons in April and the same amount was exported in May.
“That brings the total to more than 3 million tons of grains exported from Poland. At the same time, imports are falling. In February it was 270 thousand tons, in March 260 thousand tons, and in April only 49 thousand tons,” summarized the minister.
As reported, on Monday morning Telush reported receiving from the EU a new draft regulation to extend the ban on imports of four types of grains and oilseeds from Ukraine to five countries until September 15, 2023 and expressed hope that it will be introduced as early as June 6.
The European Commission’s speaker for agriculture and trade, Miriam Garcia Ferrer, clarified at a briefing at noon that no decision has been made at this stage, discussions are ongoing.
The EU ban on imports of wheat, corn, rapeseed and sunflower from Ukraine came into force on May 2 and replaced unilateral import bans imposed by countries bordering Ukraine, particularly Poland, Bulgaria, Hungary and Slovakia, in violation of the Association Agreement and EU internal regulations as of April 28.
As noted by the EU, Bulgaria, Hungary, Poland and Slovakia undertook to cancel unilateral measures on these and all other goods originating from Ukraine and to allow free transit.
The total gross harvest of grains and oilseeds in Ukraine in 2023 is expected to be 68 million tons, 8.5% less than in 2022, when it was 73.8 million tons, and 36% less than in 2021 (106 million tons), this forecast was released by the Ukrainian Grain Association (UZA).
“The significantly lower volume of the future harvest is due to both the occupation of part of the territory of Ukraine, mines, hostilities, and the lack of funds and other resources for farmers to conduct a full sowing campaign and grow crops,” UZA said in a statement.
According to its estimate, the total area sown in Ukraine will be 28.2% less than in previous years – about 19.5 million hectares. “Of course, much depends on how the sowing season will end and on further weather conditions,” the association said.
According to its analysts, exports from Ukraine in the new season 2023/2024 could amount to 43.9 million tons. In the current season (which ends June 30, 2022), exports could reach 56.4 million tons, preserving the marine export route. At the same time, transitional balances at the beginning of the new season could be about 11.9 million tons of grains and oilseeds, which is three times more than in previous seasons, except in 2022/2023 MY, when balances were the maximum (about 25 million tons).
“A characteristic feature of this year will be a drop in the volume of grain crops due to a decrease in the area sown under them compared to last year and a simultaneous increase in the forecast of oilseed crops due to an increase in the area sown under them,” the UZA stressed.
According to grain market analysts, the harvest of wheat in Ukraine in 2023 could reach only 17.9 million tons (in 2022 – 20.2 million tons, and in 2021 – a record 33 million tons), with a reduction in acreage under wheat by more than 2 million hectares.
“Even this harvest is enough to meet domestic demand and food security of the country (especially when about 7 million Ukrainians have left the country), but will reduce the export potential for food security in the world,” the association explained.
According to its data, the export of wheat in 2023/2024 MY, given the smaller harvest, could be about 15 million tons, taking into account the fact that at the beginning of the season transitional residues will amount to 5.3 million tons.
UZA also forecast a barley crop of 4.4 million tons in 2023 (10.1 million tons in 2021 and 5.8 million tons in 2022) and expects to export this crop in 2023/2024 MY at 2 million tons.
Corn harvest in the new season in the UZA expects at 23.3 million tons, linking this figure with the reduction of cultivation areas on 800 thousand hectares (in 2021 – 37.6 million tons, in 2022 – 27.3 million tons). According to experts of the Association, the export of this crop may be about 19 million tons, taking into account the transition stocks at the beginning of the new season at the level of 2.3 million tons.
Analysts at UZA forecast the sunflower harvest in 2023 at 12.7 million tons, due to the increase of cultivated areas under it also by 800 thousand hectares (in 2022 – 11.1 million tons, in 2021 – 16.9 million tons). UZA expects sunflower seed export at 1.2 million tons, and sunflower oil production may reach 11.5 million tons.
UZA’s preliminary forecast for rapeseed harvest in 2023 is 3.8 million tons, with exports in 2023/2024 MY at 3.5 million tons. The soybean crop is at nearly 4.4 million tons and exports 2023/2024 MY will be 3 million tons.
According to analysts, the forecast voiced exports of grains and oilseeds in 2023/2024 MY will be valid if the work of the Ukrainian Black Sea ports. “The world has already seen that export of grain through Ukrainian ports and ensuring the safety of navigation in the Black Sea is the only way to quickly and efficiently supply Ukrainian grain to the countries that badly need it,” the business association stressed.
UZA stressed that the reduction of crops and exports from Ukraine will have a negative impact on the availability of grain on the world market and will lead to higher prices and, consequently, to an increase in food inflation in the world.
According to the forecast of Ministry of Agrarian Policy, announced in late March, the area of cereals and leguminous crops in 2023 will be 10.24 million hectares, which is 1.4 million fewer than in 2022, while the area under oilseeds will grow by 0.92 million hectares – to 8.85 million hectares. In particular, winter wheat will be 4166 thousand hectares (-834 thousand hectares against the previous year), spring wheat – 285 thousand hectares (+67 thousand hectares), winter barley – 536 thousand hectares (-255 thousand hectares).
