Ukraine Cuts Grain Export Prices Amid Russia's Port Strikes

Ukraine has lowered its minimum export prices for agricultural products in response to Russian attacks on its seaports, which have driven up shipping costs. Agriculture Minister Taras Vysotskyi told NV Business that the previous system set an indicative grain export price of $220 per metric ton and a minimum price of $180.

However, logistics costs climbed sharply after exporters began rerouting shipments through European ports, adding $50 per metric ton in expenses. If grain sells for $220 per ton in Constanta, the additional freight costs leave a net price of about $170 at Ukraine's border, which is lower than the indicative price.

The government lowered the minimum price to make Ukrainian grain competitive abroad despite the higher cost of transportation. At an indicative price of $170 per ton, exports break even, but under the current circumstances, even a zero margin is good because it generates working capital.