Trade with the EU: export of flour and groats from Ukraine is at risk.

The director of the 'Flour Millers of Ukraine' association, Rodion Rybtchynsky, reported that Ukrainian flour and groats producers are concerned about the reduction of their product supplies to the European Union. After the end of the trade measures on June 6, now 75% of the export of these goods falls on EU countries.

'Starting from June 6, we have the opportunity to supply the EU market with up to 583.3 thousand tons of wheat and wheat flour by the end of the year. However, due to the combined quota, there are doubts whether we will be able to fully utilize it. Grain exporters find it easier to find buyers in the EU and use the quota,'

Rybtchynsky also added that Ukrainian producers continue to work with EU representatives, demanding a separate quota for flour exports or the cancellation of the quota altogether.

Transportation Problems

Since the beginning of the war in Ukraine, the number of enterprises engaged in grain processing has significantly decreased. This has led to a 50% reduction in flour and groats exports. One of the reasons is the change in logistics and the increase in transportation costs. Also, due to transportation problems across the Black Sea, container shipping has not yet fully recovered.

It is noted that the geography of grain product sales has changed: 75% of goods go to European markets, most of which are to the EU. Other parts are exported to the Middle East, Africa, and Asia.