Ukraine: cost of agricultural logistics should become much lower — expert

Source

APK-Inform

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Ukraine remains significantly short of the USA and EU countries by such indicators as the logistics performance index (LPI), calculated by the World Bank expects every 2 years. According to the calculated estimations, to date the logistics costs in Ukraine exceed the same figures in the leading countries by nearly 40%, declared the Economic policy adviser at the International Finance Corporation (IFC), Oleg Nivievskyi during his report within frames of the agro-logistics forum "Dnieper-Danube-Black Sea" in Chișinău (Moldova) on October 2.

The LPI index is based on the World Bank studies, and it is the excellent indicator of the existing problems in the logistics sector, and specifies all problems, which are necessary to bring into view. At the same time, the index describes the situation not only in the agrarian sector, but also in the whole economy of the country. To date, the logistics performance index in Ukraine is far behind the current "champion" — Germany, which takes the first position in the world by logistics performance, said the speaker.

Also, O.Nivievskyi specified that the World Bank experts took into account 6 main components, when calculated the LPI index.

At the same time, the largest problems turned up from the lack of efficiency of the infrastructure, border control, and the customs work, as well as the competence and quality of the logistics services, said the expert.

In addition, he added that due to the inefficient logistics, Ukrainian agrarians were forced to sell the produced commodities at significantly reduced prices, and received much less income, provided much less investments in production, which in turn had a negative impact on the quality and volumes of agricultural commodities, which would be sold by traders.

Nevertheless, the agro-industrial sector in Ukraine continued actively developing, and the agricultural logistics costs started gradually declining. But the results can become even better. In comparison with the USA, the scales of Ukraine are much less, and the costs should be much lower, respectively. For 4 recent years, the average cost of delivery of Ukrainian grains to the ports decreased from 60 USD/t to 30 USD/t. So, it should be not even 20 USD/t, but even less, taking into account the potential opportunities, summed up O.Nivievskyi.

You can become acquainted with the detailed information and key points of the forum "Dnieper-Danube-Black Sea" from the news line at our web-site.

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