The cost of logistics has a negative impact on the profitability and volume of Ukrainian agricultural production

09 december 2022

The war of russia against Ukraine destroyed permanent logistic connections and limited the possibilities of Ukrainian agricultural products export. The deblockade of Black sea ports made it possible to export more than 11 million tons of grain and oilseeds within 3 months. However, the further functioning of the grain corridor raises doubts among market participants. A sharp increase in the cost of rail grain transportation at the end of November worsened export opportunities, which increased the minimum cost of delivering agricultural products to ports by 53%. The starting bid at auctions for the use of grain hopper trucks was changed from UAH 2,817 to UAH 4,300.

Logistics is becoming one of the key factors that will affect the profitability of agricultural production, respectively, the production plans of farmers in 2023. In autumn, winter crops are already reduced by 30-40%. We can expect a decrease in the cultivated area in Ukraine under grain and oil crops during spring sowing.

Currently, the search for new logistics opportunities, the orientation of exports to road transport and river ports is relevant. Find out about this at the Trade&Logistics Christmas Meet Up Forum in Warsaw on December 21, 2022.

The event will be held in Mercure Warszawa Centrum Hotel.

 OrganizersCommunity of Pulse Producers and Consumers of Ukraine, Polish-Ukrainian Chamber of Commerce

Sponsors: Myande Group,  MTL Maritime Logistic, Trade Sponsor - MK Merchants SA.

Special partner - Turkish-Ukrainian business association TUID, partners - Ukrainian European Business Hub BBN,  Altera Agro LLC, АПК-Ресурс.