21 Jul 2023 15:34

Ukrainian farmers to lose $50 per tonne due to logistics changes over grain initiative cancellation - expert

MOSCOW. July 21 (Interfax) - If the Black Sea Initiative is not reinstated, it will have a considerable impact on the financial stability of Ukrainian farmers even in an optimistic scenario when their losses make up $50 per tonne due to changes of logistics, Vadim Nesterenko, the founder of the Riston Holdings agro-industrial group, told Ukrainian media outlets.

In the pessimistic scenario, it could lead to the complete halt of sales of agricultural products, which will provoke the growth of global prices of grains, the expert said.

"The industry will face many problems in the medium term, as early as in two or three months, primarily because of European farmers' resisting against the movement of grain through their borders and the effective cessation of export on the great water," Nesterenko said.

Thanks to the grain corridor and opened capacities of overland logistics, Ristone Holdings managed to sell 95% of harvested crops, including 30% sold on the domestic market, in the 2022-2023 marketing year, he said.

"Domestic farmers expect considerable and urgent aid of international partners in resolving logistics issues of export of Ukrainian grain to world markets," Nesterenko said.

Despite the fact that Ristone Holdings has the experience of growing potatoes and vegetables, the company decided against launching these tracks, but to focus on growing export crops, namely sunflower and corn, which were sown on 20,000 hectares and 6,500 hectares, respectively, during the spring sowing campaign, instead. Their harvest will be processed at the company's own enterprises.

Ristone Holdings is an agricultural vertically integrated holding which grows grains and industrial crops, operates a cattle business, and produces and sells agricultural products wholesale and in retail.

Nesterenko is the founder and head of the supervisory board of Ristone Holdings.