Ukraine’s Grain Route to EU and Global Markets Ensures Global Food Security

This is written in a blog on the Svit.UA website by Dmytro Ustavitsky, co-founder of the logistics company NIDERA AGRO, an expert in international logistics and innovative solutions, and industry leader of the NGO Svit.UA.

“Despite the ongoing war, Ukraine’s grain exports play a crucial role in ensuring food security worldwide. This month, the EU is set to present an updated Common Agricultural Policy (CAP), which will be adopted in 2028. Currently, discussions are underway to extend trade preferences introduced in 2022 due to the war until 2027, as hostilities persist.

According to Ukraine’s Ministry of Agrarian Policy and Food, agricultural exports generated $24.6 billion in 2024, accounting for 59% of the country’s total exports. Ukrainian farmers have managed to increase export volumes by 12.5% compared to 2023, with grain sales rising by $1.1 billion and oilseed exports increasing by $0.5 billion.

The Role of Logistics in Ukraine’s Agri-Food Sector

Logistics in Ukraine’s agricultural sector is pivotal in ensuring food security both domestically and internationally. It covers the entire supply chain—from delivering seeds, fertilizers, and machinery to farmers to transporting harvested crops to storage facilities, processing plants, domestic markets, and export terminals. Efficient logistics minimizes harvest losses, preserves grain quality, and ensures competitive pricing.

War-Driven Challenges: Infrastructure Losses and Risks

Russia’s full-scale invasion has underscored the critical importance of stable logistics. The destruction of transport infrastructure, the blockade of maritime routes, the bombing of grain storage facilities, and the mining of agricultural lands have severely disrupted supply chains. However, Ukraine has adapted by expanding export routes through Danube ports and alternative land corridors to the EU.

Export Potential: Opportunities and Challenges

The European Union remains Ukraine’s primary trading partner, with Ukrainian grain helping reduce food inflation in the region. However, neighboring countries see Ukraine’s agricultural sector not just as a partner but also as a competitor, making access to new European markets more challenging. Therefore, the extension of trade preferences and resolving border blockades are top priorities.

Ukraine’s export potential remains strong due to the high quality of its agricultural products. The President of the Ukrainian Grain Association (UGA) conducted an audit across EU countries, receiving positive feedback on Ukrainian grain, which has been recognized as one of the best in Europe.

Developing Logistics Infrastructure: A Key to Competitiveness

Our team has built a comprehensive logistics network for farmers, including:

• Domestic logistics across Ukraine
• Grain transshipment at the Chop terminal
• Formation of export batches (we assist in forming 1,200-ton batches for Italy)
• A platform for small farmers to collaborate on joint exports

Financial Opportunities for Exporters

Farmers have become more adept at managing foreign currency contracts, simplifying export operations. Additionally, banks have streamlined foreign currency account services, mitigating exchange rate risks

However, successful exports require certification and professional support. Our team helps small producers navigate these processes safely, offering export solutions for shipments starting from 1,800 tons. Ensuring product quality is a key factor for export success.

Trade Strategies and Farmer Training

One common mistake among farmers is selling grain immediately after harvest, when prices are at their lowest. It is often more profitable to store grain and analyze market trends to sell at the optimal time.

Further improvements in agri-logistics require investments in:

• Restoring transportation infrastructure
• Developing storage facilities
• Digitalization and technological innovations
• Optimizing logistics processes
• Enhancing international cooperation and supporting farmers

At NGO Svit.UA, we are actively addressing these issues and will be organizing meetings with Ukraine’s Ministry of Agrarian Policy to discuss state support for small and medium-sized farmers in expanding into international markets.

In wartime conditions, export assistance for small and medium-sized farmers is a strategic priority for ensuring food security and economic growth. Ukrainian producers remain key partners for the EU, and trade integrity is crucial. The primary expectation from European buyers is honesty in product quality and volume commitments.

Ukraine’s Unique Market Integration Potential Despite the challenges of war, Ukraine has unique opportunities to integrate into the European market. Investments in logistics, digital solutions, and international cooperation will make this process efficient and profitable for Ukrainian farmers”.