Ukraine Lost USD 1.5 Billion In Food Exports During Month Of War - Agrarian Policy Ministry

During the month of the war, Ukraine lost USD 1.5 billion in food exports.

The Ministry of Agrarian Policy and Food has said this in a statement, Ukrainian News Agency reports.

“First of all, I want to assure that Ukraine will be able to feed itself in full. We have stocks for Ukrainians for more than one year. We have begun an active sowing campaign. We do not have a shortage of any of the food items. The state began to buy grain and other stocks from farmers using state budget funds. We have much more food products than we can consume - all this should not deteriorate when other countries of the world are in crisis, and some are in famine, and we need foreign exchange earnings to support our economy," the First Deputy Minister of Agrarian Policy and Food Taras Vysotskyi is quoted in the statement.

According to him, earlier Ukraine exported up to 5 million tons of agricultural products per month through the seaports of Odesa and Mykolaiv, but due to the current situation, this is now impossible, which blocks Ukrainian exports.

"Currently, the ability to supply abroad has fallen to 0.5 tons of grain per month, because of which Ukraine has already lost USD 1.5 billion," Vysotskyi said.

The First Deputy Minister said that at present there are three routes for agricultural exports - these are the Danube ports, the railway and roads, but each of them has its own problems.

According to him, the Danube ports account for approximately 30% of exports, they have limited capacity, since there are not enough barges, berths and terminals.

Vysotskyi noted that earlier Ukraine practically did not use this method of exporting of its products, therefore, no investment was made in these capacities.

“There are also problems with the railway communication, which can deliver about 70% of the products. Previously, the European railway was not actively used to transport grain. In Ukraine and Russia, as you know, there are different track widths and rolling stock. Therefore, it is necessary to look for European grain carriers, to reload products into narrow-gauge railcars. In Europe, this practice is not common, so there are not enough locomotives, traction, and transshipment points with terminals," he added.

Vysotskyi also said that Ukraine is now actively working with European partners on this issue, because otherwise Ukraine can export the export balances that are in Ukrainian warehouses three years.

Besides, he added that today up to 30,000 tons of domestic grain products are sent by rail every day.
“Nevertheless, together with our partners, we are doing everything to intensify the processes of export transportation of products,” Vysotskyi said.

As Ukrainian News Agency earlier reported, the sown area of ​​winter grains for the 2022 harvest increased by 5.5% or 0.4 million hectares to 7.7 million hectares compared to 2021.

In 2021, farmers harvested 106 million tons of grain, legumes and oilseeds, which is the largest figure in the history of the country's independence.