Vesele Vitaliy Bylenko looked ruefully at the mountains of grain
in his barn, contemplating the growing obstacles to shifting the
stockpiles after Russia this week exited a deal allowing Black Sea
exports.
Ukraine, European countries and the United States have lamented
Moscows decision to scrap the landmark accord brokered by the
United Nations and Turkey last July.
But Bylenko said the deal signed in Istanbul had actually barely
functioned for months.
It has been working only on paper, Bylenko told AFP.
Ukraine grows far more wheat than it consumes and exports
contribute to global food security, especially in African
countries.
The termination of the deal has renewed fears of shortages or
price hikes that could hit vulnerable countries hardest.
Ukraine officials accused Russia of obstructing the deal in
recent months, and Bylenko said so few ships were arriving at
Ukrainian ports to export grain he was already using alternate
routes.
Offers to buy grain from us in Odesa were scarce and we already
took almost all our grain to small river ports, he said.
Instead, the wheat, maize and sunflowers he grows on his
farm of 1,300 hectares and that employs some 35 people, was leaving
via neighbouring Romania.
I think that for the five months left (this year), this will not
change substantially.
Rock-bottom price
But the Romania route is more costly and complex than the Black
Sea route river ports are around 200 kilometres (125 miles) further
from his farm than Odesa.
Your profit margin is decreasing, the CEO of 11 years told
AFP.
Due to lack of options, grain will now move through Romania,
further lowering prices, Bylenko predicted.
Added to that, five neighbouring EU countries including Romania
have blocked sales of grain over concerns of plummeting prices on
their local markets, but allowed supplies to transit to other
nations.
The more produce there is, the lower the price, he said, noting
he had 400 tonnes of wheat piled at his farm.
If before the war, the price was around $270 per tonne, now
those who are buying offer $120. We would like even $135.
To salvage the deal, Ukraine has proposed joint patrols with
other Black Sea nations but Russia has repeatedly threatened to
target ships nearing Ukrainian ports.
The situation may be painful, but last summer farmers were
wondering how to sell any grain at all, Bylenko said.
The symbolic significance of grain in Ukraine is hard to
miss.
Were competitive
The office of another agribusiness CEO, Lyudmyla Martinyuk, of
Kivshovata Agro, is decorated with sheaves of wheat and a portrait
of the national poet, Taras Shevchenko.
She said Ukraine boasts some 30 million hectares of fertile land
to...