Canada to support UN‘s $40 million worth of grain storage equipment purchase for Ukraine
The Food and Agriculture Organization of the United Nations (FAO), with the financial support of Canada, has launched a project worth 52 million Canadian dollars (40 million US dollars) to solve the problem of the shortage of grain warehouses in Ukraine
It was reported by the press press service of the Ministry of Agrarian Policy and Food.
The Ministry of Foreign Affairs of Canada will finance FAO the purchase of means for the temporary and permanent grain storage in 15 regions of Ukraine.
We are talking about polyethylene sleeves for grain storage, loading and unloading equipment, and long-term modular storage.
In addition, FAO will purchase up to $2 million worth of laboratory equipment to support six strategic laboratories for animal disease testing.
According to the ministry, this season Ukraine expects a harvest of up to 51.1 million tons of grain.
Out of the total 75 million tons of grain storage capacity in the country:
- 14% of elevators were damaged or destroyed,
- 10% are located on the territory occupied by russia,
- about 30% remain filled with 22 million tons of last year's harvest ready for export.
The agency notes that this initiative will allow the storage of an additional 2.4 million tons of grain in 2022-2023, along with appropriate technical support and equipment.
In turn, the recently developed FAO grain storage support strategy envisages providing Ukraine with 4.07 million tons of grain storage in 2022-2023, which is 25% of the national storage deficit of 16 million tons.
The strategy also supports the State Production and Consumer Service of Ukraine by strengthening the state's capacity to test and certify food products required for export at border facilities.
The Canadian-financed FAO project will complement the $17 million aid previously provided by Japan, designed to ensure the storage of 1 million tons of Ukrainian grain.
We remind you that the Food and Agricultural Organization of the United Nations (FAO) will announce a tender to purchase equipment to temporarily store grain of the new Ukrainian harvest.