Logistics without the Black Sea cost farmers 50–90 euros more per metric ton

The logistics system, which is currently being restructured to facilitate grain exports, cannot fully replace the Black Sea. The additional cost of shipping to alternative destinations ranges from 50 to 90 euros per metric ton. 

This was reported by Oleg Khomenko, CEO of the UCAB association.

He also noted that alternative routes are challengingin terms of bothcost and capacity.

According to Khomenko, the rising costof shipping makes Ukrainian grain less competitive on the market, drains farmers’ funds, and reduces the inflow of foreign currency into the country. The situation is compounded by the fact that the fall planting season is just beginning, when farmers urgently need funds, yet have nowhere to store their grain or sell it. The hardest part will come in December and January, and if the ports still aren’t operational, farmers simply won’t have the money to plant their fields in the spring.

Oleg Khomenko also drew attention to the 30% increase in “Ukrzaliznytsia” tariffs. This further increases logistics costs for agricultural enterprises that export their products. In his opinion, the decision should be temporarily revoked.

This decision must be reviewed. And for the time being, we must ensure that this fare increase is canceled either at the government level or at the “Ukrzaliznytsia” level, in order to alleviate the situation regarding liquidity and logistics costs for agricultural and other enterprises that export their products,” he noted. 

Earlier,globalfood prices spiked due to attacks on ports in the Odesa region. In August, they reached their highest level since the end of 2022. Prices rose by 1.9% compared to July—primarily due to grains, sugar, and dairy products. Sugar prices rose by 11.9% over the month, while wheat prices increased by 2.6%. Overall, the price of wheat is already 15% higher than last year’s level.

Юлія Калабайда