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Ukrainian Producer Exports Wheat Directly to Egypt

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Ukrainian Producer Exports Wheat Directly to Egypt

Ukrainian firm POLITEHNIKA bypassed intermediaries to sell 7,000 tons of wheat directly to Egyptian flour mills, achieving an additional gain of up to $15 per ton.

High Profitability in Direct Wheat Sales

Ukrainian agricultural enterprise POLITEHNIKA has directly sold 7,000 tons of wheat to flour mills in Egypt in an effort to overcome the downward price pressure in the global grain market. The shipment, loaded from Ukraine's Danube River ports and delivered to Abu Qir Port, offered an alternative model that bypassed intermediaries. According to information shared by Ihor Serov, Deputy General Director for Foreign Economic Relations, this direct export model generated $6 more per ton for FOB sales and $15 more per ton for CPT terms compared to traditional deliveries.

Ukrainian Producer Exports Wheat Directly to Egypt

Management of Logistics Operations from Two Centers

Logistics company INBULK undertook the commercial and technical operations of the supply chain from Danube ports to Egypt. The company's Ukrainian and Egyptian offices simultaneously managed shipping, in-port storage, handling, vessel chartering, quality control, and customs processes. The INBULK Egypt team handled the unloading operations of the grain at the destination port while meeting the product demands of local industrialists. The option to ship grain to warehouses in Egypt and market the product locally was also offered to exporters, and it was stated that small-scale producers could join this route by consolidating their batches.

Ukrainian Producer Exports Wheat Directly to Egypt

Cost Balance in Global Grain Trade

Although direct export channels provide a significant outlet during periods when low purchase prices pressure producer profits, every shipment carries operational risks. According to assessments by industry representatives, freight, port handling, storage costs, insurance premiums, and extended collection periods directly determine the final net profit. Therefore, it is emphasized that high sales prices do not automatically translate to direct profitability, and all logistics and financing parameters must be calculated individually for each shipment. The export advantage can quickly erode if rising costs are not managed correctly.

Data from the Source — Source: POLITEHNIKA, Igor Serov
ValueMeasure
7000 tonnesAmount of wheat sold
6 dollars/tonnePrice advantage per tonne according to FOB terms
15 dollars/tonnePrice advantage per tonne according to CPT terms

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