Agricultural exports are only 46% of their potential - the government has outlined the losses caused by the lack of full access to the Black Sea ports

In September, Ukraine exported 2.4 million tonnes of agricultural products. And this is 46% of the potential volume—without full access to the Black Sea ports. The Ministry of Agrarian Policy reported this on October 2, UNN writes.

Details

"In September, Ukraine exported 2.4 million tonnes of agricultural products, which amounts to 46% of the potential required export volume," the ministry quotes Minister of Agrarian Policy and Food Taras Vysotskyi as saying.

What Ukraine exported

In particular:

• 1.4 million tonnes accounted for grain (38% of potential exports);
• 444,000 tonnes – for oilseeds (83%);
• 311,000 tonnes (64%) – for vegetable oil;
• 280,000 tonnes (46%) – for oilseed meal.

"By transport route, 1.3 million tonnes, or 54%, were exported through Danube ports; 993,000 tonnes, or 41%, by rail; and another 120,000 tonnes, or 5%, by road," the Ministry of Agrarian Policy reported.

"Without full access to the Black Sea ports, we effectively face an objective export limit of 45–50%. That is why it is critically important for Ukraine to preserve and expand alternative routes while also working with European partners to compensate for additional logistics costs," Vysotskyi noted.

Appeal to the EU

According to the minister, Ukraine has appealed to the European Union with a proposal to allocate at least €1.1 billion to compensate for additional logistics costs, calculated at approximately €50 per tonne. Such support could create an opportunity for an additional export of up to 20 million tonnes of Ukrainian agricultural products. "At present, the Ukrainian side is awaiting the European partners' consideration of the request," the statement says.

In addition, Vysotskyi noted that during recent meetings in Brussels, the Ukrainian side raised the issue of access for Ukrainian products to the EU market.

In particular, Ukraine and the European Commission discussed changing the mechanism for administering tariff quotas for dairy products and flour.

They also discussed expanding opportunities for exporting Ukrainian bioethanol to the EU. Since July 1, Ukraine has required 7% bioethanol to be added to gasoline. Because of the war, gasoline for the Ukrainian market is imported from the EU with bioethanol already added. Together with this gasoline, Ukraine imports an average of about 10,000 tonnes of bioethanol each month—approximately 120,000 tonnes per year. Ukraine is proposing that the EU take these volumes into account and grant an additional quota for the export of Ukrainian bioethanol. The current quota for Ukrainian bioethanol exports to the EU is 125,000 tonnes. 

Regarding storage capacity

At the same time, the minister recalled that, due to limited crop-storage capacity, Ukraine's additional need for storage facilities is estimated at approximately 11 million tonnes.

To meet this need, Ukraine has already secured more than $17.5 million in support from international partners to purchase grain storage bags, which will be provided free of charge to agricultural producers in frontline areas. Free storage bags will be available to agricultural producers with areas ranging from 100 hectares to 3,000 hectares. Their distribution is expected to begin in October. 

The Ministry of Agrarian Policy is also approving amendments to the relevant government resolution that will allow $25 million in World Bank funding to be used to compensate up to 80% of the cost of grain storage bags purchased independently by agricultural producers. In particular, such support is envisaged for producers with areas ranging from 100 to 7,000 hectares, as well as farmers in frontline regions with areas ranging from 3,000 to 7,000 hectares. The maximum compensation will amount to UAH 23,000 per bag.