Export of grains and oilseeds this season will exceed 50 million tons – VAR

The volume of Ukrainian exports of grains and oilseeds in the current marketing season – from July 1, 2023 to June 30, 2024 – will reach at least 50 million tons.

This was stated by Denys Marchuk, Deputy Chairman of the All-Ukrainian Agrarian Council (Vseurkrainsk Agrarna Rada – VAR).

According to Mr. Marchuk, more than 47 million tons of agricultural products from Ukraine have already been shipped to foreign consumers as a result of the maritime grain corridor. Therefore, by the end of June, total exports will reach at least 50 million tons.

At the same time, up to 85% of all agricultural exports are exported by sea, another 15% by the Danube, and only 5% by rail and road.

“Thanks to our Armed Forces, which guaranteed the safety of navigation in the Black Sea, our export capabilities have increased from several tens of thousands of tons in August 2023 to 5-6 million tons this year in April and May. This makes it possible to hope for favorable grain prices and increased profits for producers due to cheaper transit and insurance,” Marchuk said.

He added that farmers are looking forward to an improvement in the price situation on the grain market, as producers of these crops have been operating at the brink of loss for the past two seasons.

“This year’s harvest potential is estimated at about 74-76 million tons of grains and oilseeds. This is more than enough for consumption and active exports,” said Mr. Marchuk.

“This year’s harvest potential is estimated at about 74-76 million tons of grains and oilseeds. This is more than enough for consumption and active exports,” Mr. Marchuk said.

“At the end of May this year, the Ukrainian Grain Association lowered its estimate of the potential harvest in 2024 by 1.5 million tons compared to the previous forecast – to 74.6 million tons of grains and oilseeds. Before that, the UGA forecasted the potential harvest in 2024 at 76.1 million tons of grains and oilseeds, which is 6.5 million tons less than in 2023.

According to Mr. Marchuk, since the fall, Ukraine has planted about 1 million hectares of winter crops less than in 2023. The reason for this is the lack of working capital.

“As for the spring sowing campaign, we have basically reached the same levels as last season in terms of spring crops. In total, more than 12 million hectares were planted with oilseeds, grains and pulses. Therefore, we can confidently say that the state will be fully provided with all types of such products,” said Mr. Marchuk.

He added that many Ukrainians now live abroad, so the volume of consumption of major crops in the country is relatively small – 15-18 million tons.

Tags: oilseeds, Ukraine, export, grain