UGA urged the government not to give priority to certain agricultural cargoes

UGA urged the government not to give priority to certain agricultural cargoes


The Ukrainian Grain Association has urged the government not to introduce priority for certain types of agricultural products during export transportation, border crossing and port transshipment.

This is reported by the UGA.

This concerns, in particular, the possible granting of preferences to the export of meal and cake. The association believes that this may limit the access of grain and oilseed crops to the scarce logistics infrastructure and increase exporters’ costs.

According to the UGA, in September Ukraine exported 2.17 million tons of basic agricultural goods. Of these, 871.6 thousand tons were transported by rail, another 1.15 million tons by sea, in particular 992.2 thousand tons through Danube ports.

The association estimates the potential export of meal and cake if they are given priority at 380-390 thousand tons per month. Another 400 thousand tons may fall on sunflower oil.

In total, this will amount to 780-790 thousand tons per month, or about 36% of current agricultural exports. If the main volume goes through the Danube, such cargoes could occupy about 68% of the current transshipment of Ukrainian Danube ports.

The UGA warns that this may reduce opportunities for grain and oilseed exports, increase competition for transport and primarily hit small and medium-sized agricultural producers.

The association called on the Cabinet of Ministers to ensure equal access for all exporters to railway, border and port infrastructure.

Earlier, the UGA and the Danube Commission discussed increasing the throughput capacity of the Danube.