Ukraine’s Grain Export Woes Disrupt Storage, Harvest, Planting

Ukraine’s Grain Export Woes Disrupt Storage, Harvest, Planting

Ukraine lacks storage capacity even for its reduced 2022 grain harvest according to the UN’s World Food Programme (WFP). The country’s grain exports from existing stocks have almost come to a halt because of the Russian invasion.

The WFP estimates that 20% of planted areas in Ukraine will not be harvested in July and that the spring planting area will be one third smaller.

Ukraine is the world’s fifth biggest wheat exporter and top three for maize, barley and sunflower seeds. Wheat production in 2021 was 40 million tonnes and 50 million tonnes for the other three.

The country’s challenge this year will be to sell existing stocks to provide storage capacity for 2022 harvest, and earn cash to buy seeds and fertilizers for the next planting season.

Before the war, Ukraine used to export almost all its grains and oilseeds, a total volume of up to 6 million tonnes per month. But Black Sea ports that had seen the majority of exports are now blocked by the war.

The country’s agriculture ministry worries that an estimated 15 million tonnes of 2022 grain harvest will not have space in the storage sites unless Ukraine exports its current stock.

If Ukraine cannot export its current stocks, farmers may not be able afford harvesting costs, let alone plant the next year’s crop.

The lack of Ukrainian grain on world markets has been pushing up food prices around the world. The WFP’s monthly spending is $70 million more to buy the same amount of food as last year.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Special Report-TotalEnergies Exits Kharyaga Project in Russia

France’s TotalEnergies has finalized a deal to transfer its remaining stake in Russia’s Kharyaga oil field to the state producer Zarubezhneft. This will become the company’s first major divestment from Russia, which is stricken with Western sanctions. The company said in a statement that it agreed to transfer the remaining 20% stake that the company held in the project.  The transaction will still need approval from the Russian authorities. TotalEnergies did not reveal the terms of the transfer. 

China’s Shinzoom to Start Anode Materials Production Trial at New Plant

Chinese Li-Ion battery anode materials producer Hunan Zhongke Shinzoom is set to start trial production of the first phase of its new factory based in Guizhou province in December. The new plant has a designed production capacity of 100,000 tonnes per year of anode materials. The first phase with 65,000 t/year capacity is scheduled to start trial production in December, and has a planned construction period of 12 months. The construction of the remaining 35,000 t/year will depend on market conditions after the first phase begins production next year.

NordStream 2 Pipeline Construction Restarts

Russia resumes construction of the Nord Stream 2 gas pipeline to Germany after a one-year break caused by U.S. sanctions. Washington claims that the pipeline compromises European energy security. The project has become a hot point in US’ sanctions to Russia, and the relations between Russia and the west.

Stay informed

error: This content is protected !!