2 Aug 2023 15:31

Ukraine agricultural product exports in July decrease by a third compared to June - association

MOSCOW. Aug 2 (Interfax) - The export of products from Ukraine's agricultural sector decreased to 3.7 million tonnes in July 2023, a 29% decrease compared to June, Ukrainian media reported, citing a report from the Ukrainian Agrarian Business Club.

"It must be taken into account that not all products managed to physically cross the border and a significant number of vehicles are still waiting in lines to leave," the report says.

The association explains "the disappointing export results" as resulting from the closure of the "grain corridor" on July 18, as well being due to low activity even before that date. In total, only 292,000 tonnes of agricultural products were exported through this channel last month. The destruction of the infrastructure of the Danube river ports also had a negative impact.

Ukrainian agricultural product exports in July consisted of 2.3 million tonnes of grain crops (51% corn, 36% wheat, 13% barley), a 40% decrease compared to the previous month; 330,000 tonnes of oilseeds (73% rapeseed, 23% soybeans, 3% sunflower seeds), a 37% increase; 549,400 tonnes of vegetable oils (92% sunflower oil, 4% rapeseed oil, 4% soybean oil) a 7% increase; and 320,700 tonnes of cake (91% sunflower, 9% soybean), a 12% decrease.

"The largest drop in exports was in positions that have a significant weight at their relatively low cost. They were mainly exported as part of the Black Sea Grain Initiative. These are grain crops and cakes," the analysts said. They explained the growth in oilseed exports as being due to the beginning of the harvest and the start of its export from the country.

"The lack of the possibility of exporting through seaports, the destruction of the Odessa region seaport infrastructure and the river ports of the Danube, the risks of extending the ban on the import of a number of Ukrainian agro-industrial products to neighboring EU countries - all this will have a very negative impact on our future exports. We will not be able to export products when the world needs them, but only when we have the opportunity, and then with significantly higher logistical costs," the association said.