- by admin - Tue, 04/05/2022 - 04:52
Ukraine is one of the TOP-3 suppliers of food to the world market. We are the world's fifth largest exporter of wheat, the fourth largest producer of corn, the third largest producer of barley and the first largest seller of sunflower oil. Also our country is one of the leaders in the production of nuts, canola, peas, millet, wheat flour, honey and other agricultural products.
According to the results of 2021, agriculture showed the highest increase in production - 14,4%, production at agricultural enterprises increased by 19,2%. As a result, agriculture, forestry and fisheries last year gave the highest percentage of GDP among all sectors of the economy - 10,6%.
It should also be noted that agricultural products account for the largest share of total export of Ukraine - about 41% a year. This is an essential component of increasing the state budget. At the same time, we provide completely internal needs in food.
What is the current situation with our country's food supply and what export opportunities we have, due to the fact that the aggressor country has blocked Ukraine’s key export route – its seaports, – the First Deputy Minister of Agrarian Policy and Food of Ukraine Taras Vysotsky told to Forbes.
«First of all, I want to assure everybody that Ukraine will be able to feed itself to the fullest. We have reserves for Ukrainians for more than one year. We started an active sowing campaign. We have no shortage of any of the food items. The state began buying back grain and other stocks from farmers at the expense of the state budget. We have much more food than we can consume – it should not spoil while other countries are experiencing a crisis, and some ones – hunger, and we need foreign exchange earnings to support our economy», - said Taras Vysotsky.
According to his words, we exported up to 5 million tons of agricultural products a month before the war through the ports of Odesa and Mykolayiv. But due to the current situation, it is impossible today, which blocks our exports. Currently, the capacity to supply abroad has reduced to 0,5 tons of grain a month, therefore Ukraine has a loss of 1,5 billion US dollars.
According to the First Deputy Minister’s words, we have three ways to export - the Danube ports, railways and highways. But each of them has its problems.
Thus, Danube ports account for about 30% of export. They have limited capacity because there are not enough barges, berths and terminals. Previously, Ukraine did not use this way of exporting its products, as no one invested in these facilities.
«There are also problems with the railway, which can send about 70% of the products. Previously, the European railway was not actively used to transport grain. Ukraine and Russia are known to have different track widths and rolling stock. Therefore, it is necessary to look for European grain trucks, to reload grain into narrow gauge cars. In Europe, this practice is not common, and therefore there is a lack of locomotives, and rods, and transshipment points with terminals. We are actively working with European partners on this issue now, because otherwise we can export the export balances in our warehouses for three years» - said Taras Vysotsky.
For today up to 30 000 tons of domestic grain products are transported by railway daily.
«Nevertheless, now together with our partners we are doing everything to intensify the processes of export transportation of products. As a world leader in food, we are not only responsible for ourselves. As a result of Russia’s invasion, dozens of countries will be suffering from and in the centre of starvation. UN Secretary-General Antonio Guterres has already stated that the whole world is facing the collapse of the entire global food system. We are working to prevent this», - Taras Vysotsky summed up.
Reference source: Cabinet of Ministers of Ukraine