19:34 07.02.2023

Ukraine cuts export of value-added food to Russia by 94% in 2022 – UAEA

3 min read

Exports of processed products in the agribusiness segment from Ukraine to Russia in 2022 fell by 93.5% compared to 2021, to $3 million from $46 million, while its supplies of similar products to Belarus fell by 86.7%, to $69 million from $520 million.

As reported on the website of the Ukrainian Agriculture Export Association (UAEA), Ukrainian exporting companies no longer plan to supply food products to the Belarusian and Russian markets, given the military aggression of the Russian Federation against Ukraine and the successful reorientation of its exports to the EU countries.

According to the UAEA, in 2022, in particular, the export of cocoa paste to Russia stopped, although in 2021 the Russian Federation was its largest buyer with a 60% share in Ukrainian imports of this product and volumes worth $20 million.

Last year Ukraine also stopped supplying ice cream to Russia, although, in 2021 it was in 3rd position in exporting this Ukrainian product after Moldova and Israel. In 2022, instead of it, Germany joined the main sales markets.

In 2022, deliveries to Belarus, in particular, Ukrainian bakery confectionery products, fell by 88.3%, to $2 million, while in 2021 it took 3rd place in the ranking of importers in this segment with an indicator of $17 million. Similarly, supplies of Ukrainian frozen beef fell by 97.7%, to $0.3 million in 2022 versus $13 million a year earlier, and canned fruit and berry products by 85.1%, to $1.5 million from $10 million.

According to the association, if in 2021 Belarus was the major importer of Ukrainian potatoes with an 80% share in exports worth $3 million, then in 2022 it took 2nd place with 23% and $1 million, respectively (a drop of 66.7%). Supplies of tomatoes, onions, cabbage, and carrots grown in Ukraine, sold to Belarus being among the top destinations in 2021, plunged or stopped. In addition, last year, the Republic of Belarus, being the leader in importers of cooked non-frozen vegetables from Ukraine and occupying first place in 2021, was "displaced" by Moldova, Georgia, and Hungary.

"With virtually unchanged exports of jam, jelly, and marmalade in 2022, Poland, Moldova, and the Czech Republic became their main buyers (in 2021 - Poland, Belarus, Israel)," the association said in the report.

The UAEA said that in the segment of frozen vegetables, last year Ukraine generally increased its export volumes with a change in its geographical structure compared to 2021: Germany rose to the 2nd position instead of Belarus, which had left the top three, and Turkey took the honorary bronze. The leader here, as in the year before last, was Poland.

"Mutual embargoes with Russia, introduced in 2016, significantly reduced mutual trade even earlier. In particular, the export of frozen beef, fresh and processed vegetables, and confectionery products to Belarus significantly decreased. Last year, supplies of cocoa paste and ice cream dropped to zero. Last year, the supply of cocoa paste and ice cream to the Russian market fell to zero," the organization said.