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June 16, 2022

First Deputy Minister of Ukraine discusses blocked seaports, elevators and pricing

Current blocked seaports in Ukraine were brought up in an interview with Taras Vysotskyi, the First Deputy Minister of Agrarian Policy and Food of Ukraine, as he commented on the situation. 

With mention to transporting grain by sea, Mr Vysotskyi said that the country was continuing to work together with international partners.

"The idea itself is important and necessary, without it we will not be able to realize all our export potential. And, of course, this requires several factors: it is enough anti-ship weapons, and guaranteed military support. Therefore, work continues in this direction. We can announce when the final details agreed upon with Ukraine will be announced," he says.

A Ukrainian port.

Mr Vysotskyi explained that with regards to demining the coast, there are many factors to assess how quickly the situation will be resolved.

"It will depend on the stage of the war," he explains. "Our victory is a completely different speed. If the fighting continues, these are other risks. Therefore, everything will vary from external factors. The mechanisms are quite fast demining, and vice versa. That is why it is difficult to delineate the horizon."

Ukraine is already preparing additional storage facilities so that, in the absence of exports through ports, it will be possible to store last year's balances and the new harvest, which will be harvested in a month, Vysotskyi added.

"Given last year's transitional balances and this year's yield forecast, there could be a deficit of 10-15 million tons. Therefore, mobile elevator cans and hoses are currently being imported as Plan B for grain storage in case of impossibility of quick export, in order to have potential equipment in reserve to store these additional tons," he says.

Ukraine has thousands of elevator capacities and they are distributed throughout Ukraine.

Mr Vysotskyi went on to talk about the pricing of products, as he explained that it depended on the season.

"As for prices for agricultural products, it is an element of seasonality. If we talk about the group of gardening – vegetables, fruits, berries – then we are approaching the season of slightly lower prices … Therefore, if there are no macro-challenges, such as further increases in fuel prices or other factors that may affect the price, purely from the point of view of the agricultural cycle, there are no prerequisites for raising prices."

 

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.

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