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Japan has invested €16.7m in saving Ukraine’s grain harvest, which has begun for July and August, and to support the restoration of export routes.
Launched on Wednesday by the Food and Agriculture Organization of the United Nations (FAO), the Japan-funded project aims to address grain storage deficits in Ukraine by providing “polyethylene grain sleeves” and increase the “export of critical agricultural goods to international markets”.
The project will be implemented by the Ukrainian Ministry of Agrarian Policy and Food.
Inability to export
The ministry has warned that while Ukrainian tillage farmers may be able to harvest their crops despite the ongoing conflict brought about by Russia’s invasion, they will be left with nowhere to store their grain and an inability to access markets if storage facilities are not expanded and export routes are not added and restored.
The ministry said it is expected that 60m tonnes of grain will be harvested in Ukraine over the coming weeks but that much of this will be left with nowhere to go as some 30% of the available capacity of granaries still remain filled with last year’s harvest.
Ukraine exports more than 45m tonnes of grain annually and according to the ministry, there are still 18m tonnes of last year’s grain harvest in silos waiting for export due to the blockage of Black Sea ports.
“Alternative rail and river routes cannot make up for the lost exports through maritime transportation and bottlenecks along new, potential supply chains that have yet to be resolved,” the ministry said.
Support package
Outlining the near €17m package in response to these challenges, head of FAO Ukraine country office Pierre Vauthier said grain storage deficits will be addressed through the provision of polyethylene grain sleeves.
Funding will also provide grain loading and unloading machinery to smallholder farmers and a variety of modular storage containers to the medium-sized producers and farm associations.
“Support will be provided to the farmers from 10 oblasts (provinces) of Ukraine: in the east, centre, south and north of the country,” said Vauthier.
In addition, the project will provide technical support to the Ukrainian Government to make operational “alternative transport routes for grain export”.
It will also fund the expansion of the technical capacity of Ukraine’s grain testing labs to “enable farmers to meet international standards including veterinary and food safety testing and certification”. It is understood this will support Ukraine to access additional markets and fast track exports.
Ensuring continued production
This is the second time Japan has contributed to fund the FAO’s humanitarian response programme in Ukraine. Its first contribution in April 2022 was of $3m.
Director of the FAO office of emergencies and resilience Rein Paulsen said: “Ukraine’s farmers are feeding themselves, their communities and millions more people around the world.
“Ensuring they can continue production, safely store and access alternative markets to sell their produce is vital to secure food availability, protect livelihoods, strengthen food security within Ukraine and ensure other import-dependent countries have a steady and sufficient supply of grain at a manageable cost.”
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