The Ukrainian grain traders union (UGA) is urging the European Union to increase the capacity of "solidarity lanes" to help export grain following the collapse of the Black Sea grain deal.
According to reports, the EU established the solidarity lanes last year after Russia's invasion to help Ukraine export grain and other agricultural products by providing alternative transit routes via rail, road and inland waterways.
On its website, UGA proposed the EU increase exports through the solidarity lanes by 1 to 1.5 million tons/month by compensating part of the costs of European carriers and ports that transit Ukrainian grain.
UGA said the increase can be done through ports of the Baltic states, Germany, the Netherlands, Croatia, Italy and Slovenia.
"It is worth noting these routes are not used much due to the complexity and cost of logistics compared to other routes," said UGA.
The price difference is approximately 30 to 40 euros/ton.
"This will lead to a significant reduction in the cost of grain transportation and will enable Ukrainian farmers to profitably export grain surplus to countries that need Ukrainian grain and stabilize global food security," said the UGA.
The UGA also proposed to transfer sanitary, phytosanitary and veterinary control from checkpoints on the border with Ukraine to the territory of the destination country, which it says would provide a significant increase in export.
UGA noted Ukraine harvested more than 73 million tons of grain and oilseed crops, and exports in the 2022/2023 season amounted to about 58 million tons. Under the Black Sea Grain Initiative, Ukraine exported:
- Over 29 million tons of grain and oilseeds through Black Sea ports
- 15 million tons through Danube ports
- 14 million tons by railway and trucks
UGA also noted this year Ukrainian producers will harvest about 69 million tons of grain and oilseed crops, the expected export volume in the 2023/2024 marketing year will be about 45 million tons, with additional oil and meal exports at 9 to 10 million tons/year.
