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The Ukrainian Ministry of Agrarian Policy is finalizing a strategic decision to grant export priority to edible oils as the nation grapples with significant logistical constraints. Taras Vysotskyi, the Minister of Agrarian Policy, announced during a press briefing that this initiative has secured the backing of all relevant agricultural associations, as reported by Forbes Ukraine.
According to Vysotskyi, the priority status will be specifically reserved for vegetable oils as value-added products, while meal and oilcake will be excluded from the preferential list. Discussions with industry stakeholders have been concluded, and the document is now being coordinated among relevant ministries before its final submission to the Cabinet of Ministers for approval. A specific timeline for implementation has not yet been established.
The Ukrainian Agrarian Council (UAC), which previously voiced opposition to granting export priority for meal and oilcake, has now supported the move to expedite sunflower oil exports. Mykhailo Sokolov, Deputy Chairman of the UAC, explained that farmers are deeply invested in ensuring that processors can move their finished products to international markets efficiently, as they are the primary suppliers of sunflower seeds to domestic facilities. Furthermore, he emphasized that transporting raw sunflower seeds requires double the cargo capacity compared to transporting processed oils, making oil exports a more logical choice for limited transport networks.
Vysotskyi highlighted that while the 'eQueue' system for road transport already provides priority for food items, no similar mechanism has been established for grains and oilseeds. The proposed measure is intended to facilitate the priority handling of edible oil shipments amid ongoing transport bottlenecks.
The urgency of these measures is highlighted by the challenging state of Ukraine’s export logistics. During the first 13 days of October, Ukraine managed to export 1.125 million tons of agricultural products, representing only 50% of the required volume. Against this backdrop, the government is looking for ways to maximize the utility of its limited logistics capacity by focusing on high-value, processed exports.
Source: UkrAgroConsult