Business news from Ukraine

Business news from Ukraine

Ukraine has chance to strengthen its position as leading player in global agricultural market – opinion

10 March , 2025  

Russia’s military aggression against Ukraine has a profound negative impact on global food security. Ukraine still remains an important link in the global food chain, and restoring its full agricultural production and export capabilities is critical to stabilizing global food markets and preventing a large-scale food crisis, SEEDSwrites .

Denys Vasylenko, co-founder of the logistics company NIDERA AGRO, an expert in grain exports and logistics, and industry leader of the NGO Svit.UA, wrote about this in a blog post on the website of the public platform Svit.UA .

“Due to the war, Ukraine has lost a significant part of its traditional export routes. The blockade of the Black Sea ports, the destruction of transport infrastructure and constant security threats have created significant barriers to agricultural exports. Disruptions in the supply of food from Ukraine have led to an increase in global agricultural prices. This hit poor countries that are critically dependent on imports particularly hard.

At the same time, new opportunities for Ukrainian farmers have emerged, including the abolition of customs duties in the EU, which has made it easier to enter the European market,” Denys Vasylenko said .

Key export destinations and new opportunities

Agriculture accounts for a significant portion of the country’s GDP and is a key factor in economic sustainability. The full-scale invasion has shown how important it is for Ukraine to maintain logistics, especially the operation of sea routes and ports, to ensure a stable supply of products to global markets.

“The main goal of our work is to integrate Ukrainian grain into the European market. Ukraine’s export potential for 2025 is highly dependent on many factors, the main one being the end of the war and the establishment of peace. In the case of a positive scenario, Ukraine has a significant potential to restore and grow exports, using the opportunities of European integration, international support and domestic reforms. In a negative scenario, our export opportunities will be critically limited,” emphasizes the grain export and logistics expert.

We managed to knock Russian companies out of the Italian market

Nevertheless, the EU remains Ukraine’s main trading partner, emphasized Denys Vasylenko.

“In January 2025, the volume of exports to the EU reached $1.8 billion. 57% of our food exports cross the EU border, of which 52% remain in the EU countries. We managed to knock Russian companies out of the Italian market. Although it is still very difficult to compete with them on prices. Now the Italian and Spanish markets are open to us, but we need to gain a foothold there. Not only with the products we sell there. We need to have a good reputation and work efficiently for the long term.

As for global markets, we also need to work hard and look for opportunities. After we almost lost China, Egypt and Turkey, African countries are very important for our wheat. Now exports to these countries have increased from 3% to 13%. This is a good trend,” said the co-founder of the logistics company NIDERA AGRO.

According to him, the blocking of ports, destruction of infrastructure, disruption of transportation routes, security risks – all this creates extraordinary challenges for farmers.

“The war has dramatically changed the logistics routes of Ukrainian agricultural exports and led to the search for alternative export routes (by rail, river, through the western borders). To stabilize exports, it is important to have an effective logistics strategy that includes route optimization, coordination with European partners, and the use of new technological solutions in grain transportation.

One of the key areas of work of the NGO Svit.UA is advocacy of Ukrainian producers before European governments and the business community.

The organization is actively working to ensure stable access of Ukrainian agricultural products to the EU markets and to support the competitiveness of our farmers. In addition, the NGO Svit.UA helps producers adapt their logistics processes, looks for new export opportunities and participates in the creation of effective solutions to improve agro-logistics,” adds Denys Vasylenko.

Ukrainian agricultural exports are facing unprecedented challenges, but at the same time, they are getting new opportunities, the grain export and logistics expert believes.

“Gaining a foothold in the European market, developing the African direction, searching for new logistics solutions and an effective product promotion strategy are the key areas that will determine the future of Ukrainian agricultural exports.

Ukraine has every chance to not only maintain but also strengthen its position as one of the leading players in the global food market. To do this, we need not only to effectively solve logistical issues, but also to build long-term strategic partnerships with importing countries despite any challenges,” Denys Vasylenko is convinced.

SEEDS

 

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