By KYIV. Dec 29 (Interfax-Ukraine) – Ukraine exported 67.5 million tonnes of agricultural goods in 2023, which is 15% more than last year’s figure, while at the same time export revenue fell by 8% to $21.9 billion compared to 2022, the Ukrainian Agribusiness Club (UCAB) has reported.
The business association said that 2023 was one of the most difficult years in the history of Ukraine’s independence, including in terms of export shipments.
Among the main obstacles of agricultural exports, UCAB named the Russian side’s inhibition of the grain corridor, which had been operating since July 2022, and then its termination and blocking of any sea exports. The destruction of the infrastructure of seaports and river ports of the Danube by Russian troops had a significant impact on the export of agricultural goods. The agricultural industry was affected by the ban on exports and transit by neighboring European countries, as well as the blocking of border crossing points on the western border.
UCAB said that despite these restrictions, exports of agricultural products grew in volume in 2023. Export earnings fell due to a fall in prices for almost all types of agro-industrial products compared to 2022, which was the year of the highest food prices in the world.
The business association warned that current export levels are not enough to meet the 2023 harvest. If the volume of exports remains the same at the end of 2023, there are risks that significant carryover stocks (primarily grain crops) will remain in Ukraine before the start of the next harvest, UCAB explained.
“This situation, amid low prices for grains and oilseeds on the Ukrainian market, and expensive export logistics, will further complicate the activities of Ukrainian farmers due to a lack of working capital. That is why it is necessary to increase export volumes through all possible channels to be able to export the entire harvested crop by the beginning new season,” UCAB analyst Svitlana Lytvyn said.
