Ukraine’s flour exports to EU face halt amid wheat quota constraints
This threatens to halt shipments to the EU, a market that accounts for over 70% of exports for five of Ukraine’s top ten flour producers.
UKRAINE – Ukraine’s flour exports to the European Union are poised for a significant disruption starting June 5, 2025, due to the inclusion of flour under the same export quota as wheat.
The EU’s annual duty-free import quota for wheat and its derivatives, including flour and granules, is capped at 1 million tonnes. With the wheat portion of this quota nearing exhaustion, there is little to no capacity left for flour exports.
This threatens to halt shipments to the EU, a market that accounts for over 70% of exports for five of Ukraine’s top ten flour producers.
Rodion Rybchinsky, director of the Flour Mills of Ukraine Union, emphasized that this regulatory structure severely limits Ukraine’s ability to sustain flour exports to its most critical market.
“We have been applying for a long time, writing letters to remove flour from the wheat code, but everything has remained the same,” Rybchinsky told Latifundist.com.
He added that continued access to the EU market is vital, especially amid reduced domestic demand and limited alternative export routes.
The situation is compounded by logistical difficulties at Ukrainian ports. The war has significantly reduced container traffic from Greater Odessa, restricting opportunities to diversify exports to other regions such as the Middle East or North Africa.
Additionally, 60% of Ukrainian flour mills have active long-term contracts with EU partners, meaning the quota restrictions jeopardize both financial stability and longstanding business relationships.
Since the beginning of the war, the top 10 flour mills have invested approximately €10 million (about US$10.8 million) into modernizing their operations.
Without continued access to EU markets, these investments could face diminishing returns. The industry has called for flour to be reclassified separately from wheat to protect export flows and business continuity.
Ukraine remains a key player in global agricultural markets, ranking among the world’s top wheat exporters.
In the 2023/24 season, the country exported over 17 million tonnes of wheat. However, export volumes are regulated through memorandums between the government and traders to balance food security with trade.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
