Page 55 - UKRRptDec23

The Supreme Audit Chamber of Poland has completed an investigation into the uncontrolled import of grain from Ukraine. The cause of the "grain crisis" was the inefficient actions and decisions of the Polish government. "Implementation of tasks related to the import and trade of grain and rapeseed from Ukraine was not reliable and effective," the report states. The document provides data on the dynamics of the growth of agricultural product imports from Ukraine during the reporting period. 2022 grain imports by almost 169 times compared to 2021 (an increase from 3,100 tons in 2021 to 523,000 tons in 2022). Corn imports increased almost 300 times (from 6,200 tons to 1.85 million tons), rapeseed increased almost eight times (from 86,000 tons to 662,000 tons). The inspection’s results show that the Minister of Agriculture's assessment of the situation was incorrect and was not supported by data and analysis that would allow for the further development of the situation. The report also says the government's actions to protect the Polish grain market came too late.
Ukraine announced a fight against illegal grain exports. In their first reading, the Ukrainian Parliament approved two bills on the fight against the illegal export of grain and the non-return of foreign currency to Ukraine’s economy.
The government of Ukraine will no longer limit the export of sugar but has approved the maximum sales volume of the product abroad per year at 650,000 tons.
Since the beginning of the war, Ukraine has changed the geography of its agricultural exports. Since the beginning of the full-scale war with Russia, Ukraine has been forced to change the geography of its agricultural exports, as a result of which the European share in January-October 2023 reached 59%, compared to 32% in 2021.
This increase in exports to Europe has been forced and is explained by a reduction in supplies to other regions: the share of African exports decreased to 7% from 14%, Asia - to 12% from 19%, Southeast Asia - to 4% from 13%.
It is noted that supplies to African and Asian countries during the war became possible only through the grain corridor that was established in cooperation with the UN and Turkey and the current temporary grain corridor, which is being used for shipments now.
The structure of Ukrainian agricultural exports in 2023 in terms of the main export positions is similar to last year's indicators: Grain crops accounted for 39%, 26% - vegetable oils, 4% - meat, 2% - dairy products, eggs, and honey. However, oilseed exports decreased to 12% compared to 16% in 2022.
Security Bureau: 'More than 20% of grain exported through high-risk channels.' More than 20% of grain exported over the past nine months went through black market or risky informal channels, Ukraine's Bureau of Economic Security said on Nov. 16.
The UN is sceptical about restoring the Black Sea Grain Initiative in its previous format. UN Secretary-General Antonio Guterres said on November 10 that restoring the grain agreement, which allowed the safe export of Ukrainian grain through the Black Sea, would be difficult.
Due to export restrictions, a large harvest will not bring profit to Ukrainian farmers. As Deputy Minister of Agricultural Policy Taras Vysotsky said, the agricultural sector will remain unprofitable due to limited opportunities for export and low prices on the domestic market, despite a good harvest in 2023, which is 5-10% more than last year. "During the two years of full-scale war, indicators of agricultural production in Ukraine remain high. This applies primarily to corn, soybeans, and rapeseed," the deputy minister said. On the
55 UKRAINE Country Report December 2023 www.intellinews.com