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Supply Chain

Ukraine Grain Storage Shortage To Ease As Exports Rise: Deputy Minister

Ukraine may lack 12 million tonnes of regular grain storage capacity by the end of November, a manageable level that is less than feared before the re-opening of the country's Black Sea ports, first deputy agriculture minister Taras Vysotskyi said.

The war-torn country's grain and oilseed exports rose to 4.5 million tonnes in August, up from 3 million tonnes in July, Vysotskyi said during an online briefing on Thursday.

The August total included 3 million tonnes shipped via the Danube river and through Black Sea ports, one million tonnes exported by rail and 600,000 tonnes by truck, he said.

Ukraine had been forced to export agriculture products by land at the start of the season as Black Sea ports were shut due to the war.

Maritime Corridor Agreement

Its sea exports resumed at the start of August following a maritime corridor agreement with Moscow that was brokered by the UN and Turkey.

In a statement released after the briefing Ukraine's farm ministry said agricultural exports could reach 5 million tonnes in September.

Vysotskyi also said he expects the rapeseed area for next year's harvest to remain stable compared with this year's crop, reflecting a shift towards oilseeds, which are more profitable and easier to manage logistically compared with cereals.

The wheat area for next year is expected to decrease, he said, without giving an estimate. Earlier on Thursday, the Ukrainian Agrarian Council - which represents producers - said the wheat area may fall by 30% to 40% due farmers' lack of funds.

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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