Ukrainian agricultural products will bring the biggest export revenues despite the war

What happened? The volumes of agricultural supplies by sea are growing sharply. This means that the Ukrainian agro-industrial complex, most likely, will retain its leadership in the structure of foreign trade and by results of this year.

Source. Mind's article “Main Category: Agricultural Industry Maintained Export Leadership Despite War.”

Details. In the pre-war period, agriculture generated up to 40% of foreign currency inflow. In 2022, given the decline of most branches of the Ukraine’s economy, primarily metallurgy, this share may increase significantly.

In six months, agricultural exports fell by only 7% (or $703 million) against the corresponding figure for the first half of 2021. Relatively active trade in the last pre-war months, in particular, in January and February, as well as active reconfiguration of logistics through the railway kept the indicator from a deeper fall.

Export transportation of grain cargoes for March – July 2022 increased almost 2.2 times – from 0.42 million tonnes in March to approximately 0.91 million tonnes in July.

It is noted that this was facilitated by a sharp increase in the volume of transportation by sea.

Background. Since August 1, export by sea has been partially unblocked, thanks to the agreements reached in Istanbul under the mediation of Turkey and the UN. During the nine days of the humanitarian grain corridor operation, according to the Administration of Sea Ports of Ukraine data, more than 370,000 tonnes of agricultural products were exported by sea.