Ukraine: Ukraine’s grain exports slump in 2023-24 season

Ukraine has exported 6.82 million tonnes of grain so far in the 2023-24 July-June season, down 24% from 8.99 million tonnes at the same time a year ago amid the country’s ongoing war with Russia, Reuters reported, citing agriculture ministry data.

The ministry also said that 153,000 tonnes of grain were exported in the first three days of October, compared with 297,000 tonnes a year ago.

Ukraine is expected to harvest 79 million tonnes of grain and oilseed in 2023, with 2023-24 exportable surplus totals of about 50 million tonnes.

Exports so far have included 3.4 million tonnes of wheat, 2.7 million tonnes of corn and 625,000 tonnes of barley. Ukraine, a major global grains supplier, traditionally has shipped most of its exports through its deepwater Black Sea ports.

The ministry gave no explanation for the fall, but traders and agricultural unions have said that Ukrainian Black Sea ports being blocked and Russian attacks on Ukrainian ports on the Danube River are the main reasons for lower exports.

Russia invaded Ukraine on Feb. 22, 2022, and during the first five months of the conflict established a blockade to prevent Ukraine from exporting grain on the Black Sea. Russia agreed to suspend the blockade in July 2022 when it signed a deal brokered by the United Nations and Turkish government allowing grain exports to resume.

Russia suspended the agreement in July 2023, saying its demand that sanctions be lifted on its grain and fertilizer exports had not been met. After reinstating the blockade, Russia began bombing Ukrainian grain assets in Black Sea ports and along the Danube River.

During the 12 months that the blockade was suspended, Ukraine exported about 33 million tonnes of agricultural products from its Black Sea ports.

Ukraine’s navy said that 12 more cargo vessels were ready to enter a fledgling Black Sea shipping corridor it has created on their way to Ukrainian ports and 10 were preparing to leave, as Kyiv steps up its push to defy the Russian blockade.

Ukraine also can export limited volumes through small river ports on the Danube River and via its western land border with the European Union.

04 October, 2023