With the onset of Russian aggression on Ukrainian territory, the geography of exports has undergone significant changes.
While the pre-war percentage of agricultural product exports to Europe was 32% in 2021, the figure has risen to 59% in the first 10 months of 2023, according to the Ukrainian Agrarian Business Club.
This increase is a result of a substantial reduction in shipments to other regions, with the share of exports to African countries decreasing from 14% to 7%, to Asia from 19% to 12%, and to Southeast Asia from 13% to 4%.
The primary reason for these changes is the blockade of Ukrainian seaports by Russian forces. Before the war, only these ports could export around 7 million tons of grain each month, while the maximum achievable through alternative routes was 3.7 million tons.
"The development of alternative routes, only possible through the territory of EU countries, led to changes. Ukrainian farmers were forced to seek buyers for their products in European countries," according to the Ukrainian Agrarian Business Club.
During the war, supplying to African and Asian countries became possible only through the operation of the grain corridor in cooperation with the UN and Turkey, as well as the temporary grain corridor currently in operation.
The only way to restore exports to traditional Ukrainian markets is to ensure the security of maritime export routes and increase shipment volumes through this channel, emphasized the Ukrainian Agrarian Business Club.