Agrologistics

Ukrainian farmers may reduce sown areas if the blockade of seaports continues.

Argentina’s corn exports in August–September will reach a record 10 million tonnes as buyers seek an alternative to Ukrainian grain, supplies of which have declined due to hostilities in the Black Sea.

russia is systematically attacking Ukraine’s agricultural and port infrastructure, civilian vessels and maritime routes in an attempt to undermine Ukraine’s export potential.

Europe should establish a special Port State Control regime for vessels carrying agricultural products from Ukraine.

Minister for Restoration, Infrastructure and Transport of Ukraine Mykola Kalashnyk appealed to Secretary-General of the International Maritime Organization (IMO) Arsenio Antonio Dominguez Velasco in connection with the sharp deterioration of the security situation and freedom of navigation in the Black Sea.

russia was the first to resume attacks on the Ukrainian grain corridor, and Ukrainian strikes on russian agricultural exports are justified.

Problems with the maritime export of agricultural products could stimulate the development of domestic processing in Ukraine.

Ukraine has officially approached the Polish side with a proposal to double the number of trains crossing border checkpoints.

Alternative routes for exports of grain, oilseeds and their processed products through the Danube region, by rail and road transport, during periods of their active use, provided a maximum of up to 50% of the volume that was shipped through the ports of Greater Odesa.

In August, vessels are no longer calling at the ports of Greater Odesa. From August 1 to 12, Ukraine exported 590 thousand tonnes of grain, which is 30% of the required volume. Currently, about 45% of agricultural exports are transported by rail, about 45% through the Danube region, and 10% by road.

The suspension of exports through seaports could result in tens of billions of dollars in lost revenue for Ukraine’s agricultural sector.

Russian attacks on civilian vessels and port infrastructure have effectively halted traffic to the ports of Greater Odesa. Ukraine is expanding exports by rail, road and via the Danube. However, these routes will be able to provide only about half the capacity of the Black Sea ports. This poses a threat to exports of Ukraine’s harvest and the stability of global food markets.

Using alternative logistics routes will cost agricultural producers an additional €50–70 per tonne of products, while the total losses of Ukraine’s agricultural sector could amount to $1.5–3 billion. This is why the support of international partners is critically important both for Ukraine and for preserving global food security.

The suspension of seaborne exports is expected to have the greatest impact on Ukraine’s wheat market.

The Ukrainian government, the diplomatic corps, and all relevant state institutions are working around the clock to restore the normal operation of the country’s ports.