The cost of grain logistics for Ukrainian farmers has increased 5-7 times

Ukraine

Published May 17, 2022

Tridge summary

Thanks to the optimization of grain supply processes across the Danube, Bulgaria and Romania, Ukraine can export about 1.5 million tons of grain per month. Previously, the monthly pre-war grain exports amounted to 6-6.5 million tons. At the same time, grain logistics became more expensive. This was stated by an experienced trader, former MP Ivan Miroshnichenko in the article "From autumn, monthly exports through various channels and corridors will increase to 3-3.5 million tons," writes Kurkul.com.

Original content

"The cost of logistics for farmers has increased 5-7 times, transshipment in ports / barges and freight in general - 7-10 times, transshipment in ports - 2.5 times. The producer is now paying for all this "space" and will pay in the future if we do not unblock direct exports through Ukrainian ports. The cost of logistics for the export of Ukrainian grain through EU ports has reached 30-40% of the world price of agricultural products, which has grown rapidly. That is, with the world price of wheat at € 380-400, Ukrainian farmers pay up to € 80-120 for logistics. Therefore, the export of surplus grain through the EU is not a solution or a panacea, "said the trader. Read also: In the East, traders do not buy grain, there is no market According to Ivan Miroshnichenko, there is another reserve, in addition to 1.5 million tons of transshipment through the ports of the Danube, Bulgaria and Romania. "The Baltic ports have free capacity, which will allow us to export an additional 1.5-2 ...

Source: Kurkul