Why is Ukrainian grain so important to the world?

The ongoing war in Ukraine has had a significant global impact, particularly in the realm of food security. Ukraine, often referred to as the breadbasket of Europe, plays a crucial role in the global food supply chain. The country is a major exporter of grains like corn, sunflower oil, and soybeans, feeding over 400 million people worldwide and representing 10% of the global grain market. This grain is especially vital for countries in Africa, the Middle East, and South Asia.

In 2022, despite the conflict, Ukraine saw an increase in its grain exports. Corn exports rose from 8 million tons in 2021 to 11.32 million tons in 2022, sunflower oil from 1.96 million tons to 2.05 million tons, and sunflower meal from 1.4 million tons to 1.58 million tons in 2023. These exports not only support Ukraine's economy but also play a critical role in the food security of importing countries.

Poland, for instance, benefited significantly, with a 37% increase in meat and dairy exports due to Ukrainian grain, enhancing the competitiveness of Polish producers. Additionally, logistics companies, traders, and ports have profited from the export of Ukrainian grain.

Ukraine's prominence in the global agricultural market is underscored by its leading position in sunflower oil production (45% market share) and as a top producer of corn, barley, and rapeseed. The country is also the sixth-largest wheat producer globally. The dependency of countries like Lebanon, Djibouti, Pakistan, Somalia, Mauritania, and Eritrea on Ukrainian wheat is notable, as they source more than half of their wheat needs from Ukraine.

Between March 2022 and February 2023, Ukraine exported 55.88 million tons of grain, with major importers including China, Spain, Turkey, Italy, the Netherlands, Egypt, Bangladesh, Israel, and Portugal. Over 65% of this exported wheat is sent to developing countries.

The blockade of Ukrainian grain in 2022 due to the war posed a severe threat to global food security, highlighting the critical importance of Ukraine in the global food supply. Despite these challenges, Ukrainian authorities have managed to unblock logistics routes, continuing to play a vital role in preventing global hunger and ensuring food security.