During the month of the war, Ukraine did not receive $ 1.5 billion in food exports, – Taras Vysotsky
Ukraine is one of the TOP-3 suppliers of food to the world market. We are the world’s fifth largest exporter of wheat, the fourth largest producer of corn, the third largest producer of barley and the first largest seller of sunflower oil. Also, our country is one of the leaders in the production of nuts, canola, peas, millet, wheat flour, honey and other agricultural products.
According to the results of 2021, agriculture showed the highest increase in production – 14.4%, production at agricultural enterprises increased by 19.2%. As a result, agriculture, forestry and fisheries last year gave the highest percentage of GDP among all sectors of the economy – 10.6%.
It should also be noted that agri-food products account for the largest share of total exports of Ukraine – about 41% per year. This is an essential component of filling the state budget. At the same time, we provide completely internal food needs.
What is the current situation with our country’s food supply and what export opportunities do we have given that the aggressor country has blocked Ukraine’s key export route – its seaports, – First Deputy Minister of Agrarian Policy and Food of Ukraine Taras Vysotsky told Forbes.
“First of all, I want to assure you that Ukraine will be able to feed itself to the fullest. We have reserves for Ukrainians for more than one year. We started an active sowing campaign. We have no shortage of any of the food items. The state began buying back grain and other stocks from farmers at the expense of the state budget. We have much more food than we can consume – all this should not spoil when other countries are experiencing a crisis, and some – hunger, and we need foreign exchange earnings to support their economy, “said Taras Vysotsky.
According to him, earlier we exported up to 5 million tons of agricultural products a month through the ports of Odessa and Nikolaev. But due to the current situation, this is impossible today, which is very blocking our exports. Currently, the capacity to supply abroad has dropped to 0.5 tons of grain per month, leaving Ukraine at a loss of $ 1.5 billion.
According to the First Deputy Minister, we have three ways to export – the Danube ports, railways and highways. But each has its problems.
Thus, Danube ports account for about 30% of exports. They have limited capacity because there are not enough barges, berths and terminals. Previously, Ukraine did not use this method of exporting its products, so no one invested in these facilities.
“There are also problems with the railway, which can send about 70% of the products. Previously, the European railway was not actively used to transport grain. Ukraine and Russia are known to have different track widths and rolling stock. Therefore, it is necessary to look for European grain trucks, to reload products into narrow gauge cars. In Europe, this practice is not common, and therefore there is a lack of locomotives, and rods, and transshipment points with terminals. We are currently actively working with European partners on this issue, because otherwise we can export the export balances in our warehouses for three years, “said Taras Vysotsky.
Today, up to 30,000 tons of domestic grain products are shipped by rail daily.
“Nevertheless, now together with our partners we are doing everything to intensify the processes of export transportation of products. As a world leader in food, we are not only responsible for ourselves. As a result of Russia’s war, dozens of countries will be on the brink of starvation instead of on the brink. UN Secretary-General Antonio Guterres has already stated that the whole world is facing the collapse of the entire global food system. We are working to prevent this, “Taras Vysotsky summed up.
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