The company Nibulon said that overall rates of Ukrainian agricultural exports have dropped by 50−60%, while the company’s own monthly decline is 25−30%.
Estimates of export volumes and current dynamics
Nibulon estimates that Ukraine currently exports about 2 mln tonnes of agricultural products a month instead of the potential 5−6 mln tonnes that would be expected under a normal economy. Such a reduction, the company says, significantly affects the financial capacity of agricultural producers and their ability to sustain operational activities and the sowing campaign.
‘But across the sector the rate of decline reaches 50−60% of what it would be today,’ said Volodymyr Slavinsky.
Rising logistics costs and delivery times
The company notes that the cost of maritime logistics has increased fivefold — to $100 instead of $20, and the delivery period has grown from 7 to 30 days. As a result, more goods are in transit and the funds tied up in transit have become more expensive.
Nibulon spends practically over 20% of its working capital on logistics to maintain shipment rates and daily deliveries at a stable level.
Other logistics problems and the company’s initiatives
Among the critical problems they cite are a personnel shortage and the inability of Ukrainian seafarers to obtain the necessary ‘Danube documents’, which makes it more profitable for companies to change the flag of their fleet. Expansion of exports by rail and road is also hindered by high tariff escalations and restrictions from neighbouring countries of the European Union (EU).
As a way of easing access to financing, Nibulon is initiating the creation of a mechanism of state and international financial guarantees to obtain operational financing from Western banks at reasonable interest rates.