Grain logistics in Ukraine is much more costly than in Europe and the USA – IFC




To date, the delivery of grain crops directly from agricultural producers to the port takes the largest share of costs in the export logistics of wheat in Ukraine, as well as from elevator to the port. The cost of such delivery exceeds the average figures in the USA and most European countries by 20%, declared the agricultural policy adviser at World Bank Group, IFC expert, Oleg Nivievskyi during his report within frames of the Agro-logistics forum "Dnieper-Danube-Black Sea" on October 18 in Chisinau, Moldova.

Nearly 18% of logistics costs in Ukraine are related to shipment of wheat directly from the field to the ports, whereas in France and Germany the figures total 8% only, and in the USA – nearly 6%. Shipment of grain from elevator to the ports total nearly 20% of the costs, whereas in France and Germany the figures total 13-14%. In turn, in the USA the figures cover 22% of all logistics expenses, the expert said.

The costs of wheat delivery from the field to elevator are also higher, which figures reach 11-12%, against 7-8% in France, and 6-7% in Germany and the USA.

At the same time, the general level of expenses for grain logistics in Ukraine is slightly lower compared with Russia, and totals 40 USD/t, against 43-44 USD/t respectively, said O.Nivievskyi.

Also, the expert reminded that since January 1, 2018, the port dues rates in Ukraine would reduce by 20%.

You can receive more detailed information about the key points of "Dnieper-Danube-Black Sea" from the news line of the conference.