In the conditions of a full-scale war, blocked ports, conflicts with EU border countries for markets, Ukraine managed to grow and sell a lot. In general, more food was sent to foreign markets in the 2022/2023 marketing year (MY) than in the 2021/2022 MR.
For reference, 49 million tons of grain were exported. Ukrainian wheat — 16.8 million tons, or 80% of the 2022 harvest — not only fed people in Africa but was also able to strengthen Ukraine’s position in certain European markets.
Meanwhile, the Ukrainian wheat of the wartime 2022/2023 MY made it possible to make good money for Turkish producers. Let’s add here that grain from Ukraine caused protests by Poles, helped European farmers to get additional subsidies, and even caused the decision of the European Commission to ban the supply of food from Ukraine to five bordering EU countries.
This ban on wheat, corn, rapeseed, and sunflower is valid until September 15. And, by the way, it is not a fact that the situation will change for the better in September. And this uncertainty with exports to the EU and constant trouble with transit are very disturbing to producers and traders, because the so-called grain corridor has
been working with interruptions lately.
Trade in the ports of Great Odesa has been rather symbolic in recent times, considering the Russian blockade of several dozen ships with food. After the Russian missile attack on the night of July 19 on grain terminals and infrastructure in the ports of Odesa and Chornomorsk, trade was forced to stop altogether. The grain infrastructure of international and Ukrainian traders and carriers Kernel, Viterra, CMA CGM Group was damaged.
The majority of traders decided for themselves that the grain corridor of 2023/2024 marketing year will not work, so they massively switch to shipments through the ports of the Danube.
What’s more, according to the information of the State Enterprise Sea Ports Administration of Ukraine, it is the ports of Izmail, Reni and Ust-
Danube that are planned to be the main ones for export in the event of the final termination of the grain corridor. Accordingly, at the same time as the active trade in the Danube ports, work on the modernization of the port of Reni is moving along in high gear and the expansion of the port of Izmail is progressing rapidly.
Considering the reduced harvest, even if the so-called grain corridor does not work, these two other routes – through Europe and the Danube – will ensure Ukraine a place in the club of global grain traders.
Although, to tell the truth, to some extent, we had to give way to other players in the markets (hopefully, temporarily). After all, due to the drop in production and problems with logistics, part of the markets was lost and will have to be “conquered” again after the victory.
But the issue of price remains relevant.