The agricultural market could suffer up to $9.8 billion in losses due to logistical problems

In 2022, the Ukrainian agricultural sector may experience $9.3 – $9.8 billion in losses due to logistics problems, which is almost the total profit of agricultural enterprises for 2020 and 2021.

This year, the domestic agricultural sector may lose:

• blocking sea ports and changing the logistics of export transportation $7.5 – $8 billion

• on the value of last year’s unsold grain – $0.5 billion

• on the cost of elevator warehouses destroyed or seized by the occupiers – an additional $1.3 billion.

Oleksandr Zakharchuk, head of the department of investment and material and technical support of the National Research Center “Institute of Agrarian Economy”, told about it. According to him, since the beginning of the port blockade, the cost of logistics in the export structure has increased 5-7 times and reached $180 per ton of grain.

Given this cost of logistics, grain producers are forced to sell goods below cost. Zakharchuk noted that the problem of railway tariffs for the transportation of crops and the cost of its storage is the most pressing issue for agriculture today.