In August, Ukraine exported only a third of its potential agricultural output

From August 1 to 26, Ukraine exported 1.423 mln tons of grains, oilseeds and processed products, equivalent to only about a third of its potential export volume for the period, according to Agriculture Minister Taras Vysotskyi.

Grain exports have been hit hardest by logistics constraints. Ukraine shipped 822 thsd tons of grains during the first 26 days of August, or only about 21% of the potential volume. At the same time, exports of oilseeds, vegetable oils and meals have generally remained at the required pace.

Rail and the Danube remain the main alternative export routes, each handling about 600 thsd tons of agricultural products. Only around 80 thsd tons were shipped by road due to the high cost of this logistics option. To support exporters, the deadline for repatriating foreign currency earnings from exports of grains, oilseeds and processed products has been extended from 120 to 150 days.

Export restrictions and high logistics costs are already affecting farmers’ plans for the autumn planting campaign. According to Vysotskyi, the area under winter wheat is expected to decline, while no significant changes are anticipated for winter rapeseed and barley. Farmers may also gradually increase the share of oilseeds in their crop structure due to challenging economics of grain production.

Farmers’ need for working capital is also increasing amid export difficulties. Agricultural producers raised about UAH 2 bln in loans over the past week, bringing the sector’s total loan portfolio to UAH 105 bln, up UAH 25 bln from the same date last year.

Tags: Ukraine, export, grain, oilseeds