Until now, the ships’ cargo has been corn, which is used, among other things, as animal feed. From the point of view of the food economy, it would be important that other grains from Ukraine were also available to the world.
On Tuesday, two more grain ships left the Ukrainian port of Chornomorsk.
Ukraine has been known as an exporter of grain and iron and steel, collecting agricultural export data Export Genius (you switch to another service) tells. In the war, steel factories have been bombed into ruins, and grain cultivation and harvesting have been impossible in some places.
Since the conclusion of the agreement, a total of around 370,000 tons of agricultural products have left Ukrainian ports, according to the news agency Reuters.
On Monday, August 8, the price of corn was 286.5 euros per ton (IGC). Calculated in this way, the value of one ship’s cargo would be around 7.5 million euros.
According to Reuters, the cargo of all the ships that have set out so far has been corn, which means that wheat, for example, has not been launched at all, even though its harvest season already started in July.
Corn is called a bulk product because it is mainly used as animal feed and as part of biofuel.
Ukraine was lucky that it had most of last year’s wheat harvest delivered by February, which means that both the warehouses and the transports were spared from the Russian attack.
The sixth largest corn producer in the world
According to the US Department of Agriculture, Ukraine produces and also exports the most corn. It is the sixth largest corn producer in the world. According to the ministry, Ukraine’s share of world corn exports is 12 percent.
Maize is cultivated in the central and northern parts of the country.
From the point of view of the global economy, Ukraine’s most significant exports are related to sunflowers. For example, almost half of the world’s sunflower oil comes from Ukraine. Sunflower cultivation is concentrated in the eastern and northeastern part of Ukraine. The biggest markets are in India and the EU region.
Last year, Ukraine received more than six billion euros in export income from sunflower cultivation.
In addition, Ukraine is a significant producer and exporter of barley and wheat.
Before the war, more than half of the land area was arable. More than one in ten of Ukraine’s population has made a living from agriculture.
In 2021, Ukraine received a total of EUR 27 billion in export income from agricultural products. It means almost half of the country’s total export earnings. Getting the grain shipments going is therefore vital for Ukraine, especially now that the war has badly damaged the country’s economy.
It is currently harvest time in Ukraine for millet, barley, soybeans, rapeseed and wheat.
Although there has been talk of a food crisis in connection with the war, especially in Africa and developing countries, most of Ukraine’s agricultural products were exported to the European Union in 2021.
The second largest export markets for Ukrainian agricultural products are China and India. For example, the demand for sunflower oil has been as great in the EU as it has been in China.
The warehouses of the ports must be unloaded first
Before Ukraine can supply the world with wheat, for example, about three million tons of corn must be unloaded from Ukrainian ports. It will take about a month.
Ukraine has about 20 million tons of grain left in its grain warehouses from last year’s harvest. In addition to that, the country has been able to produce the same amount of grain this year.
Ukraine has only three ports at its disposal, the capacity of which is enough for three million tons per month, if deliveries reach full speed. According to estimates, this could be reached in October.
The problem is whether ship owners dare to pick up cargo from Ukrainian ports, even if the so-called the security corridors are now created.
Operating in Ukrainian waters requires expensive insurance, which raises the prices of transportation and also freight.
Before the war, about half of Ukraine’s grain exports were exported by land and rail, and about half by sea.
You can discuss the topic until Saturday, August 13. until 11 p.m.