"Grain Processors Forum - 2021", Odessa, Ukraine
Sep 23, 2021

Ukraine can reach pre-war level of agricultural export, if Odessa’s ports really unblocked – UAC




Ukraine can reach the pre-war level of agricultural export, if Odessa’s ports are really unblocked, deputy chairman of the Ukrainian Agrarian Council (UAC) Denis Marchuk said.

"Before the war, Ukraine exported 5-6 mln tonnes of agricultural products monthly through sea ports, and river ports were used minimally. In June, river transportation increased to 2.2 mln tonnes. The signed agreement on exports unblocking will allow grain caravans to leave the ports of Odessa, Chornomorsk and Pivdennyi, which will let to export 4 mln tonnes. If we add the river, rail and road transportation, then in total Ukraine can reach the pre-war level of exports. So far, we are talking about 120 days of export, but this is a conditional period, the agreement can be extended if necessary. We will provide internal logistics. To open the ports of Odessa is the most important", – he explained.

According to D. Marchuk, the sale of grain will solve the problem of significant carry-over stocks, will provide working capital to farmers, and taxes to the state and local budgets. When the ports are unblocked, purchase prices for Ukrainian grain will increase, which will improve the financial state of farmers who are currently selling products below production cost.

"Today, grain prices are lower than the cost price on the domestic market of Ukraine. We hope that the unblocking of the ports will raise prices by at least 100 USD/t", – he believes.
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