Ukraine increases exports of agri-products by 15% - UCAB

This was reported by the Ukrainian Agribusiness Club (UCAB), Ukrinform saw.

In 2023, Ukrainian exporters of agricultural products faced a number of obstacles. The Russian side slowed down the work of the grain corridor and then withdrew from the grain initiative. As a result of Russian shelling, the infrastructure of the seaports of Odesa and the river ports of the Danube was damaged. Neighboring European countries banned the export and transit of Ukrainian agricultural products. Protesters blocked checkpoints on the border of Ukraine.

The UCAB emphasizes that, despite these restrictions, exports of agricultural products increased in physical terms in 2023. However, according to UCAB estimates, revenue from agricultural exports in 2023 will amount to $21.9 billion, which is 8% less than last year.

UCAB explains that the reduction was due to a drop in prices for almost all types of agricultural products compared to the previous year (2022 was the year of the highest food prices in the world).

At the same time, the current level of exports is not enough to export the 2023 harvest. If the current pace continues, there are risks that Ukraine will have significant carryover stocks, primarily of grain crops, by the start of the next harvest.

"This situation with low prices on the Ukrainian market for grains and oilseeds and expensive export logistics will further complicate the activities of Ukrainian farmers due to lack of working capital. That is why there is a need to increase export volumes through all possible channels to be able to export the entire harvest before the start of the new season," UCAB analyst Svitlana Lytvyn summarized.

As Ukrinform reported, in 2022, Ukraine exported $23.6 billion worth of agri-food, which is 15% less than in 2021.