Black Sea Closure Drives Up Ukrainian Grain Export Costs

Ukrainian grain exports face significant logistical challenges due to the closure of Black Sea ports, resulting in increased costs for shipping. According to Oleg Khomenko, CEO of the UCAB association, logistics now cost between 50-90 euros per metric ton more than usual. This increase makes Ukrainian grain less competitive on the market and drains farmers' funds.

The situation is further complicated by a 30% rise in 'Ukrzaliznytsia' tariffs, which adds to the already-high logistical costs for agricultural enterprises exporting their products. Khomenko has called for this decision to be temporarily revoked to alleviate the situation regarding liquidity and logistics costs.

The global food prices have already spiked due to attacks on ports in the Odesa region in August, reaching their highest level since 2022. Sugar prices rose by 11.9% over the month, while wheat prices increased by 2.6%, with the price of wheat being 15% higher than last year's level.