Ukraine increases agricultural product exports 16% in August - Association
MOSCOW. Sept 5 (Interfax) - Ukraine increased agricultural product exports in August 2023 16% compared to the previous month to 4.3 million tonnes, Ukrainian media said, referring to information from the Ukrainian Agrarian Business Club (UCAB) association.
Significant growth was achieved despite the disruption of the river infrastructure and the drop in the water level on the Danube, as well as the ban on the export of a number of key Ukrainian exports to neighboring countries, and the general lack of maritime exports, the association said.
The river ports on the Danube remain the most efficient transportation channel, thanks to which 4% of all agricultural exports went to foreign markets in August.
Exports of grain crops increased 2% in August vs. July to 2.3 million tonnes. Of these crops, 52% was wheat, 39% corn and 9% barley, UCAB said.
Grain transportation by rail in Ukraine in August reached over 1.6 million tonnes, and was one of the leading cargoes in terms of traffic volumes last month, Ukrainian railway operator Ukrzaliznytsia said.
Domestic rail transportation of grain cargo increased 56% to 744,300 tonnes, while export transportation fell 45.3% to 875,800 tonnes. Ukrzaliznytsia connects the decrease in the latter with the blockade of seaport operations.
Shipments of oilseeds to foreign markets increased 2.3-fold to 755,400 tonnes, consisting of 94% rapeseed, 4% soybeans and 1% sunflower seeds, UCAB said.
The share of cake after extraction from vegetable oils in Ukrainian agricultural exports in August 2023 increased 15% to 367,300 tonnes, and consisted of 98% sunflower oil and 2% soybean oil.
The volume of vegetable oil shipments in August remained unchanged at 548,900 tonnes, of which 81% is sunflower oil, 17% rapeseed oil and 2% soybean oil.
According to UCAB analysts, the largest changes in August were observed in the export of oilseeds as the oilseed harvest period ended and it was actively exported.
"The next month is important for determining further trends in Ukrainian exports, since on September 15, 2023, the ban on exports to neighboring countries of four key positions should end. The removal of this restriction will significantly improve the situation involving Ukrainian exports, and the entire Ukrainian agricultural sector is hoping for this," UCAB said.
On June 5, the European Commission agreed to extend until September 15 the ban on the export of four crops: wheat, corn, rapeseed and sunflower, from Ukraine to Bulgaria, Hungary, Poland, Romania and Slovakia. Meanwhile, transit of these products through these countries is allowed.
Ukraine has been exporting most grain and other agricultural products through its ports on the Black Sea for many years. However, after the start of the military operation on the territory of the country, the work of the ports was severely restricted. Export flows were largely redirected to Europe. Ukrainian agricultural products began to accumulate in large quantities in the EU countries neighboring Ukraine, which caused discontent among local farmers. The agricultural sectors in Poland, Bulgaria, Hungary, Slovakia and Romania suffered the most. Against this background, Lithuania is promoting the idea of exporting Ukrainian agricultural products through Klaipeda and other ports in the Baltic countries, but the disadvantage of this route is the high cost of transporting products to the ports.