"American-Ukrainian Agrarian Congress", Washington, USA
Jun 20, 2016

Ukraine: logistics and infrastructure are extremely topical issues in the agro-industrial complex




In the nearest future, the Ukrainian agricultural sector is able to increase the production volumes of agricultural products and grains in particular, and then the problem would naturally present itself: there is a qualitative product which is highly valued all over the world, but there is a deficit of facilities for its transportation, declared the Deputy Minister of Agrarian Policy and Food of Ukraine, Vladyslava Rutytska.

She said that as of the beginning of 2016, the certified capacities for storage of grains in Ukraine reached more than 32 mln tonnes, including the port elevators - 2.6 mln tonnes. In addition, the volume of non-certified capacities totaled more than 15 mln tonnes.

According to V.Rutytska, the major critical point is that most linear elevators have outdated technological equipment, and shipment capacities in the ports can ship more than 4 mln tonnes per month. However, the service sector has rather high monopoly component, due to ultra-high costs of services for grain transshipment. For example, in the USA river transport ships more than half (55%) of grain cargoes, which cost is 2 times lower than the cost of rail transport, and down 4 times compared with the cost of truck transport. The share of river transportation of grains in France totals 25%, but in Ukraine the index reached 5% only last year.

In addition, the Deputy Minister stressed high importance of further realization of the pilot project of phyto-quarantine laboratory in the port of Odessa. The SE Ukrainian Sea Ports Authority already received the list of required technical equipment for a new laboratory.

You can receive more detailed information about the prospects of the agro-industrial complex of Ukraine by visiting the IInd American-Ukrainian Agrarian Congress, to be held on June 20-21, in Washington, D.C. (USA).