Key facts
- Ukraine exported 630,000 metric tons of agricultural products in September, up from August.
- Grain accounted for 380,000 tons of Ukraine's September agricultural exports.
- Ukraine's agricultural exports are operating at 40% of their full capacity.
- Russia continues to block Ukraine's Black Sea ports.
- Ukraine's Agriculture Ministry has raised $12 million for polymer storage sleeves for frontline farms.
- Farmers can borrow up to Hr 90 million ($2 million) each through the '5-7-9%' loan program.
Ukraine increased its agricultural exports via road, rail, and the Danube River in September compared to August, but operations remain at only 40% of their full capacity due to Russia's ongoing blockade of Black Sea ports. The Agriculture Ministry reported that 630,000 metric tons of agricultural products were exported this month, with grain making up 380,000 tons.
While this represents an improvement from August, when exports were at 33% of capacity, the alternative routes cannot match the volume handled by seaports. Agriculture Minister Taras Vysotskyi emphasized the need to expand these alternative routes, support producers with financing and storage, and work towards restoring full Black Sea export capabilities.
The blockade has raised concerns about a potential global food crisis, particularly for customers in Asia and Africa, and threatens financial losses for Ukrainian farmers due to falling grain prices and limited storage. Kyiv previously estimated potential losses of 10.8 billion euros ($12.6 billion) from blocked exports.
To support farmers, the ministry has allocated $12 million for free polymer storage sleeves and is expanding the '5-7-9%' loan program, offering up to Hr 90 million ($2 million) at a 10% interest rate. Lending to the agricultural sector is increasing, with projections of an additional Hr 15 billion ($337 million) per month, potentially reaching Hr 60 billion ($1.3 billion) by year-end. Farmers require at least Hr 80 billion ($1.8 billion) for the autumn sowing campaign.
Ukraine has requested 220 million euros ($255 million) from the EU to aid cash-strapped farmers, a proposal under consideration. Without adequate support, reduced planting could impact the agricultural sector, which constituted 60% of Ukraine's exports in the first half of the year.