Grain export rates from Ukraine have dropped threefold due to problems with maritime logistics

Average daily grain shipments from Ukraine over the past week have decreased to 48 thousand tons – three times compared to the first half of the month.

This was reported by the Minister of Agrarian Policy and Food of Ukraine Taras Vysotsky.

The reason for the decline in export rates was the blockade of sea transportation and Russian attacks on port infrastructure. At the same time, the costs of transporting products increased and purchase prices on the domestic market decreased.

In particular, food wheat became cheaper by 16%, feed wheat by 17%, corn by 8%, barley by 14%, and rapeseed by 5%.

Due to changes in logistical and market conditions, the previously established minimum allowable export prices ceased to correspond to the situation and complicated the conclusion of some foreign trade contracts.

The government adjusted the mechanism for calculating minimum export prices. A coefficient of 0.714 will be applied to the base estimate to account for additional logistical costs caused by the war. 

USM previously said that credit conditions for farmers will be eased due to the complications of maritime logistics.