Ukraine's Wheat Exports Plunge into Losses Due to Soaring Logistics Costs

Ukraine's agriculture minister Taras Vysotskyi has sounded the alarm about the country's wheat exports. Vysotskyi said that despite higher global and export prices, logistics expenses have made wheat exports unprofitable for producers.

The cost of delivering grain to foreign markets is significantly higher than the original estimate of $150 per ton. In early July, farmers could sell wheat for shipment through the deep-water ports of Greater Odesa at about $205 per ton, excluding freight. However, additional logistics costs through Danube ports and onward access to the Black Sea add more than $100 per ton.

The export price of wheat has now risen to around $275 per ton, but after including other producer expenses, wheat exports become loss-making, Vysotskyi said.