The Ukrainian agricultural sector is preparing for changes – domestic grain will receive a new digital passport

The Ukrainian agricultural sector is getting ready for significant changes, as a new software for grain accounting will come into effect on November 11. It will replace the previous GrainData system, and from now on, all operations related to the storage and processing of grain will be recorded in a single electronic register. This register is expected to enhance the transparency and efficiency of the grain market, as it will allow for more accurate tracking of the volumes of produced and stored grain, control its quality, and prevent fraud. Moreover, this system will facilitate a more active and seamless integration of the Ukrainian agricultural sector into global grain supply chains.

However, the implementation of the new system requires certain preparatory measures, and currently, the Ukrainian government recommends that all elevators register in the new register by November 9, familiarize themselves with the operational procedures, and verify the accuracy of their entered data. Since every grain operation will be recorded electronically, this will ensure transparency in all processes, and the automation of accounting will reduce the time required for operations and decrease the number of errors.

Regarding the relationship between the Ukrainian agricultural sector and the global grain supply system, according to the Ministry of Agrarian Policy and Food, as of October 21, Ukraine has exported 12.04 million tons of grains and legumes. In October alone, 2.57 million tons of grains were shipped. The largest volume of exports is attributed to wheat, with 7.228 million tons exported since the beginning of the season. Significant quantities are also exported in barley (1.673 million tons) and corn (3.844 million tons). In fact, during the war, Ukrainian agrarians continue to ensure food security not only for their country but also for many other states. Meanwhile, in the European Union, intense debates continue regarding the import of Ukrainian grain. Poland, Hungary, Romania, Bulgaria, and Spain are advocating for a total ban on the import of Ukrainian agricultural products, but the European Commission takes a more cautious stance. Cheap Ukrainian grain is an important factor in curbing the rise of prices for bread and other food products in Europe. A total ban on Ukrainian grain would lead to a sharp increase in food prices. Such a development could provoke social tension and public discontent. Effectively, the European Commission needs to reassure farmers in member countries who are suffering from competition with Ukrainian producers while ensuring the availability of food for European consumers.

However, the issue of the cost of Ukrainian grain is also a separate story. The resumption of Russian attacks on Ukrainian ports has led to a significant increase in grain prices on global markets. This was reluctantly acknowledged by the Assistant Secretary-General of the UN, Miroslav Jenča. During a meeting of the UN Security Council, he noted that just this autumn, following the resumption of Russian shelling, six civilian vessels and the grain infrastructure in Ukrainian ports had been damaged. All of this resulted in wheat prices rising by more than 6% within two months. Therefore, the UN has already officially emphasized that the security and stability of Ukrainian grain exports through the Black Sea are critically important for global food security. Meanwhile, Russia's attacks on ports undermine Ukraine's economy and threaten to trigger a new global food crisis. It should be noted that Russian military forces are deliberately targeting the port infrastructure in southern Ukraine. Over the past three months, Russian troops have carried out nearly 60 attacks on ports, civilian vessels, and grain storage facilities. As a result of these shellings, approximately 300 port infrastructure facilities, 177 vehicles, and 22 civilian vessels have been damaged or completely destroyed. Additionally, 79 civilians have been affected, including port workers, logistics company employees, and ship crews.