The dynamics of agricultural exports were affected not only by the shelling of Ukrainian ports, — Taras Vysotskyi

Agricultural exports decreased by 20% from the maximum indicators – partly due to shelling, partly due to delayed harvesting due to weather conditions.

Deputy Minister of Economy, Environment and Agriculture Taras Vysotskyi said this in an interview with BusinessCensor.

According to him, shelling of port infrastructure definitely affects exports, but there is no critical stoppage – work continues.

“Today, the average monthly export of basic grains, oilseeds and processed products is over 4 million tons. For comparison: during peak periods during a full-scale war, we exported almost 5 million tons per month. That is, now the volumes are approximately 20% less than those maximum indicators. This is partly due to shelling and risks to shipping. At the same time, not only the security factor influenced the dynamics,” the Deputy Minister noted.

Taras Vysotsky added that this year there was also a delay in harvesting late crops due to weather conditions. As of the end of September, only about 5% of the area under corn had been threshed, which is significantly less than the average annual rate. High grain humidity required additional drying, which slowed down shipping and increased costs.

“As a result, logistics worked with overloading: wheat, sunflower oil and corn were simultaneously accumulating in the ports, and railway routes were maximally loaded. Some exporters had to redirect flows to alternative routes. That is, the reduction in exports is a combination of security risks and objective production factors, and not a single factor,” he emphasizes.

In particular, in recent weeks the rate of concluding contracts and shipments has decreased by about 20%. As Taras Vysotsky notes, shelling of ports affects the behavior of counterparties, but there is no question of stopping trade.

“This is a reaction to increased risks, in particular for port infrastructure and shipping. At the same time, there is no critical curtailment of activity. Most international partners are already working taking into account war risks. Business has adapted to war conditions: delivery schedules are being adjusted, insurance costs are increasing, additional costs are being built into contracts. That is, risks are being taken into account, but the market continues to function. Ukrainian grain and oil remain in demand and long-term contracts are being maintained,” the Deputy Minister of Economy said.

Recall that in January, Ukraine exported 5 million tons of agricultural products: 3.4 million tons of grain crops, 351.7 thousand tons of oilseeds and 479.7 thousand tons of vegetable oils.