Ukraine Implements Minimum Export Price Procedures for Key Agricultural Commodities

On August 21, 2024, Ukraine's Cabinet of Ministers passed Resolution #944, establishing a new procedure for setting minimum export prices for selected bulk commodities, including grains, oilseeds, vegetable oils, and other essential agricultural products. The Ministry of Agrarian Policy and Food of Ukraine (MAPFU) will be responsible for determining the minimum export prices, which are set based on Incoterms delivery conditions and are published on the MAPFU official website.

Commodities Affected by the New Export Price Regulations

The new resolution applies to several key agricultural products, including:

• Honey (HS Code 0409 00 00 00)
• Walnuts (HS Codes 0802 31 00 00 and 0802 32 00 00)
• Wheat (HS Code 1001)
• Rye (HS Code 1002)
• Barley (HS Code 1003)
• Oats (HS Code 1004)
• Corn (HS Code 1005)
• Soybeans (HS Code 1201)
• Rapeseed(HS Code 1205)
• Sunflower Seeds (HS Code 1206 00)
• Soybean, Sunflower, and Rapeseed Oils (HS Codes 1507, 1512, 1514)
• Vegetable Meals (HS Code 2306)

How the Minimum Export Prices Will Be Implemented

According to the resolution, export contracts for the listed commodities will be prohibited if the contract price is lower than the minimum export price. These prices are referenced in U.S. dollars per kilogram and will be updated monthly on the MAPFU website. The minimum prices will be calculated using a formula that factors in reference prices from the previous month, adjusted by a discount rate to ensure competitiveness.

Expected Timeline for Implementation

This new procedure is expected to take full effect by November 2024. The aim is to regulate export prices, ensuring that Ukrainian exporters remain competitive while maintaining the value of key agricultural commodities on the international market.

Ukraine’s decision to set minimum export prices for essential commodities like grains and oilseeds reflects a strategic move to stabilize the market and protect domestic producers. As global agricultural markets become increasingly volatile, especially with supply chain disruptions and fluctuating demand, such regulatory measures may help ensure that Ukraine remains a competitive player on the world stage. However, exporters will need to closely monitor these changes and adjust their strategies accordingly to stay compliant with the new rules.