News From Agro-Industrial Complex

On Thursday 9 February, the Atlantic Council (the US non-governmental organization researching international relations and international security problems) published an expert column of NIBULON's CEO, Andriy Vadaturskyy, about private businesses in Ukraine that are struggling on their own to survive the devastation caused by the Russian invasion, as well as about the necessity to internationally support the agrarian sector. NIBULON's CEO also mentioned possible consequences for the entire world in case of absence of appropriate assistance.

According to real-time harvest data, 269 K mt of peas were harvested in Ukraine in 2022, or half as much as the year before. Due to active hostilities in the southeast, the pea area shrank from the usual 240-250 Th ha to 118 Th ha. Supposedly, plantings of other, later pulses also decreased amid related challenges faced by the Ukrainian farmer (difficulties in selling products abroad, a lack of money for sowing, a shortage and increasing prices of fuels, fertilizers and other inputs).

In January, compared to December, Ukraine reduced the export of agricultural products by 24% to 5.5 million tons, in particular, corn - by 27% to 2.6 million tons, wheat - by 19% to 1.3 million tons, as a result of deliberate blocking by Russian inspectors inspection of ships and the lack of energy supply in the Black Sea ports during the last 10 days due to shelling of the energy infrastructure of Odesa.

Against this background, the purchase prices for corn in the Black Sea ports fell from $210-212/t to $200-205/t, as the additional costs of traders for idleness of vessels waiting in inspection queues rose to $30-40/t.

Amid the war, the EU has become Ukraine’s main trading partner, accounting for more than 55% of mutual trade. Now it is important for us to maintain the pace of trade development and extend autonomous trade measures in the form of complete elimination of duties, as well as to extend agreements on road transport permits. This was emphasized by Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, at the EU-Ukraine Summit.