17:01 10.07.2023

Some 30-35 mln tonnes of Ukrainian grain can be exported through Danube route annually - UGA

2 min read
Some 30-35 mln tonnes of Ukrainian grain can be exported through Danube route annually - UGA

Organizing the transshipment of Ukrainian grain in Romanian territorial waters, ensuring round-the-clock operation of the Sulinsky Canal and developing the Ukrainian mouth of Bystroe will allow exporting 30-35 million tonnes of grain annually through the Danube route, President of the Ukrainian Grain Association (UGA) Mykola Horbachev said.

"Despite the fact that Ukraine exported 58 million tonnes of grain last season, this season exports may amount to only 44.8 million tonnes. This is due both to a smaller harvest this year and the high cost of logistics, which actually causes losses to Ukrainian producers," he said at the FAO conference dedicated to the Black Sea Grain Initiative.

Horbachev recalled that the constant blocking by the Russian Federation of the work of the "grain corridor" cost Ukrainian farmers more than $1 billion in payments for demurrage. Together with the significantly more expensive logistics of exports across the land border, this "eats up producers' income."

Therefore, according to him, the sea route is especially important for the export of agricultural products from Ukraine, including through the establishment of the "grain corridor" even without the participation of the Russian Federation. At the same time, it is necessary to develop the Danube route by organizing an anchorage in Romanian territorial waters for transshipment of grain to large-tonnage ships. This will significantly reduce the cost of logistics and contribute to the promotion of a route independent of the "grain corridor."

He also noted the problem of mines on Ukrainian agricultural land, which will affect Ukraine's ability to resume grain production to pre-war levels.

"The fall in grain and oilseed production from 106 million tonnes before the full-scale invasion to 69 million tonnes this year has a huge impact on rising prices on the world market and food inflation, which even in the EU countries has reached 15% or more," he said.

The UGA noted the need to clear Ukrainian farmlands and asked for more assistance in this direction in order to restore agricultural production in Ukraine and reduce pressure on prices on the world food market.

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