Due to low grain prices, it will be unprofitable for Ukraine to export it by alternative ways - opinion

This year, the use of alternative routes for the export of Ukrainian agricultural products will be unprofitable in terms of pricing, since the price of grain is very low, and the cost of alternative routes is very high. This opinion was expressed by Vadim Miroshnichenko, head of the trading department at Cargill, reports AgroPortal.ua.

“Regarding alternative grain export routes by land, wagons, containers, vehicles, this was real last year, because the price bounced up due to political components, and all additional costs incurred by the commodity producer were mainly compensated by world prices. Now they are trending down and today all alternative routes look impossible in terms of pricing. Accordingly, the cost of exporting grain from the Poltava, Vinnitsa, Chernihiv regions to the port of Constanta will be more than 50% of the price,” the expert believes.
As V. Miroshnichenko noted, under such conditions, not a single commodity producer will be able to get not only profit, but will have a huge loss if he chooses an alternative route. Therefore, the "grain corridor" today is the only salvation for the world in terms of food supply, as well as for Ukraine as a way to sell agricultural products. Also, the work of the "grain corridor" is necessary for Ukraine to trade with China.

According to him, Cargill's priority, if such an opportunity presents itself, is to work at the company's terminal with maximum capacity due to the operation of the "grain corridor". The company also, to a lesser extent, but uses alternative routes - for the most part these are Danube ports and dry valley routes through the western borders.