Ukraine increased grain exports by $1.3 billion
26 February 13:44
Ukraine has significantly increased revenues from exports of grains and oilseeds in the current marketing year. According to the Ukrainian Grain Association (UGA), in July-January of 2024/2025 MY, Ukrainian exporters received $11 billion from the sale of these crops abroad, which is $1.3 billion more than in the same period last season. This is reported by "Komersant Ukrainian" with reference to Ukrinform.
Sales of key grain crops have increased significantly. Thus, corn exports brought in $2.412 billion compared to $2.098 billion a year earlier, wheat – $2.084 billion against last year’s $1.488 billion, and barley – $350 million compared to $212 million in the previous season.
Among the oilseeds, soybeans showed significant growth, with exports of $909 million (against $718 million last season) and rapeseed at $1.452 billion (against $1.145 billion). At the same time, exports of sunflower seeds decreased significantly to $22 million compared to $57 million in the same period last season.
Despite a slight decrease in exports of sunflower oil, it remains the most profitable export item among all the crops represented, providing $2.701 billion in the current season against $2.777 billion in the previous one. There is also a decrease in revenues from the export of meal – to $682 million (against $774 million) and other vegetable oils – to $393 million (compared to $438 million).
According to Ukrinform, in January 2025, total exports of agricultural products from Ukraine amounted to 5 million tons, which is 9.7% less than in December last year. Of this amount, grains accounted for 3.5 million tons, and oilseeds – 352 thousand tons.
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Preferential trade with the EU and its enemies
The European Union is Ukraine’s largest trading partner. The decision to allow the free import of Ukrainian goods into the EU was made by the EU at the beginning of the full-scale Russian invasion as a gesture of support for the Ukrainian economy and in response to the Russian naval blockade of Ukrainian ports. During the two years of its operation, the simplified regime has gained a lot of opponents in the European Union. In particular, the governments of Bulgaria, Poland, Hungary, Romania, and Slovakia demanded to restrict imports of Ukrainian products (later France joined this position). They claim that cheap agricultural products from Ukraine are swallowing up their markets.
Six major European farmers’ associations also protested strongly against Ukrainian products. Polish farmers have even organized a border blockade, not only with Ukraine but also with Germany.
Nevertheless, after fierce debate, the simplified trade regime with Ukraine was extended until June 5, 2025. However, at the request of these countries, it was severely restricted.
Thus, the provisions on duty-free trade were amended to include new “safeguards” to protect European producers.
In particular, the European Commission may apply any measures it deems necessary if imports from Ukraine cause “significant disturbances” on the EU market or the markets of one or more EU Member States. In such a case, the European Commission may launch an “emergency brake” for particularly sensitive agricultural products. This list includes the following products:
- poultry
- eggs
- sugar
- oats
- cereals
- corn;
- honey.
However, the European Commission has not only options but also responsibilities. If imports of these goods exceed the average import volumes recorded in the second half of 2021 and for the entirety of 2022 and 2023, customs tariffs must be restored within 14 days.
Thus, the EU has practically returned import quotas for many Ukrainian goods, albeit at a rather high level.
