In particular, it is proposed to increase exports through solidarity by 1-1.5 million tons per month, compensating part of the costs of European carriers and ports.
The Ukrainian Grain Association has officially appealed to Valdis Dombrovskis - Executive Vice President, Trade Commissioner of the European Commission regarding the optimization of alternative routes (so-called solidarity routes) of grain exports from Ukraine to European ports with subsequent shipment to third countries, writes TTS.
In particular, UZA proposed to the European Commission to increase exports through solidarity by 1-1.5 million tons per month, compensating part of the costs of European carriers and ports that transit Ukrainian grain.
"This will lead to a significant reduction in the cost of grain transportation and will allow Ukrainian farmers to profitably export surplus grain to countries that need Ukrainian grain and stabilize global food security," the report says.
In 2022, Ukraine harvested more than 73 million tons of grain and oil crops, and exports in the 2022/2023 season amounted to about 58 million tons. More than 29 million tons of grain and oil crops were exported by Ukrainian Black Sea ports as part of the grain initiative.
"Ultimately, this year Ukrainian producers can harvest about 69 million tons of grain and oilseed crops, and the projected volume of exports in the 2023/2024 marketing year may amount to about 45 million tons. Of course, Ukraine also exports oil and meal - about 9-10 million tons per year," UZA noted.
In connection with the disruption of the Black Sea grain initiative by the Russian Federation, Ukraine faced an urgent need to additionally increase the capacity of "Solidarity Paths" by approximately 1-1.5 million tons of grain per month. "This can be done by exporting grain through the ports of the Baltic states (Klaipeda and others), Germany (Rostock, Hamburg), the Netherlands (Rotterdam), Croatia (Rijeka), Italy (Trieste) and Slovenia (Koper). The development of these routes is actively supported by the European Commission," the Association added.
It should be noted that these routes are not used much due to the complexity and cost of logistics compared to other routes. The price difference is approximately 30-40 euros per ton.
Therefore, UZA asks the EU to introduce "green corridors" for Ukrainian agricultural products to the seaports of the Baltic countries, Germany, the Netherlands, Croatia, Italy and Slovenia, which will include: the transfer of sanitary, phytosanitary and veterinary control from checkpoints on the border with Ukraine to the territory of the destination country, which will ensure a significant increase in exports; and the introduction of subsidies from the European Commission to compensate European carriers for additional logistics costs for transit transportation and partial compensation for European ports - the so-called port costs for Ukrainian grain.