Denys Marchuk, Deputy Chairman of the Ukrainian Agrarian Council, Media Center Ukraine — Ukrinform
May 19, 2023, 17:23

Issues with European exports and Grain Corridor cause grain product prices inside country to drop — Denys Marchuk

The issue of the export of agricultural products to Europe and the functioning of the Grain Corridor, which Ukraine has been facing for the past months, lead to a decline in the market and a drop in prices for all groups of grain products.

Denys Marchuk, Deputy Chairman of the Ukrainian Agrarian Council, made this statement during a briefing at Media Center Ukraine — Ukrinform.

“The impact was negative, because there was a drop in prices inside the country. They were already far from the market level in Ukraine, due to the costs spent on insurance and logistics. But the shutting down of the “corridors” and the reduction of the export potential — and the internal supply is quite high — led to the market and prices for all groups of grain products to actually decline. This is the case for wheat, corn, sunflower and rapeseed. That is, for all export products, which are rather significant for us in terms of making money through sales,” explained Denys Marchuk.

He pointed out that there is currently a significant amount of carryover stock, and Ukraine will soon enter the peak of the new harvest. That is why, according to Denys Marchuk, it is very important to improve the negotiation process and the work of the Grain Corridor.

“Let’s take into account that there are 10 million tonnes of carryover stock, and the harvesting potential of this sowing campaign for this season is about 44 million tonnes, of which about 30 million tonnes are export potential. These are very large volumes, and we should not rely only on solidarity corridors, through which we can export up to 3 million tonnes at best. Therefore, Black Sea export is one of the key ones, which also affects the balance of prices within our country.”

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