Ukraine is stepping up grain exports and has already shipped 300,000 tons in May

The European Union is finalizing a plan to promote land food exports from Ukraine amid Russia's blockade of Black Sea ports. The European Commission is working on technical solutions that will speed up the supply of vegetable oils, wheat and corn, which are the main export positions of Ukraine. Europeans are worried about logistical problems, which may prevent the use of alternative routes through neighboring countries, because despite the steps taken to remove trade barriers, infrastructure deficiencies may hinder exports.

The food and agricultural sectors provide 10% of Ukraine's GDP. In 2021, Ukraine exported $ 28 billion worth of food products, including $ 7.4 billion to the EU. The authorities are looking for an opportunity to export another 25 million tons of grain of the old harvest, which remains in Ukraine, until the beginning of the new season. Before the war, almost 5 million tons of grain were exported every month through the Black Sea ports, which are now blocked by the Russians.

Unfortunately, the maximum potential of railway exports across the western border does not exceed 1.1 million tons of grain and 250 thousand tons of sunflower oil per month, which is much lower than the possibilities of maritime exports.

In addition, Ukraine faces a significant number of quarantine phytosanitary measures and quotas for land transport, which complicates the delivery of products across Europe to the final buyer. Therefore, European officials say that solving the problem of Ukrainian exports should be a priority not only to prevent the global crisis, but also to support Ukraine's financial system.

According to the State Customs Service, as of May 11, 2021/22 MY Ukraine exported 46.168 million tons of grain and legumes, including 299 thousand tons in May, namely:

• wheat - 18.532 million tons (6 thousand tons in May),
• barley - 5.676 million tons (8 thousand tons),
• rye - 161.9 thousand tons (not shipped in May),
• corn - 21.495 million tons (284 thousand tons).

In addition, 70.1 thousand tons of flour were exported this season, including 68.6 thousand tons of wheat flour, of which 0.5 thousand tons were shipped in May.