Why Israel became one of the main buyers of Ukrainian flour amid a drop in exports to a 20-year low

Ukrainian wheat flour exports continue to decline, and this trend no longer looks like a temporary setback but rather a prolonged crisis for the entire industry. As of the end of July – March of the 2025/26 marketing year, Ukraine exported 48.3 thousand tons of wheat flour compared to 49.8 thousand tons for the same period of the previous season. Moreover, by the end of 2025, flour exports overall fell to 66.8 thousand tons — the lowest figure since 2006.

For the Israeli audience, the dynamics of Ukrainian agro-exports are important in this story, as well as the fact that Israel has entered the top five largest importers of Ukrainian wheat flour. Against the backdrop of war, disrupted logistics, and the loss of some traditional markets, such statistics show that even under heavy pressure, Ukrainian processing remains significant for foreign buyers, including the Middle East.

How Ukrainian flour exports are changing

Supplies are shrinking, and geography is narrowing

According to industry data, over the nine months of the current season, the volume of wheat flour exports amounted to 48.3 thousand tons. A year earlier, for the same period, the figure was slightly higher — 49.8 thousand tons. At first glance, the decline seems moderate, but combined with earlier annual data, it becomes clear that the market has been moving downward for more than a year.

The structure of supplies looks even more alarming. If last season the share of EU countries in Ukrainian wheat flour exports reached 44%, it has now decreased to 35%. This means that even the European direction, which partially compensated for the loss of other markets, no longer has the same effect.

Who buys Ukrainian flour

In the top 5 countries-importers of Ukrainian wheat flour for the specified period were Moldova with a volume of 14.9 thousand tons, “Palestine” with 9.2 thousand tons, the Czech Republic with 7.4 thousand tons, Israel with 4.4 thousand tons, and Spain with 4.2 thousand tons.

The very fact of Israel’s presence on this list is indicative. It is not about a symbolic volume but a significant share in total exports, especially considering the overall reduction in external sales and high competition in the region’s food markets.

Why the industry is losing ground

The war has hit not only the fields but also processing

Industry representatives directly link the current decline to the consequences of the war. In their assessment, logistical problems have practically blocked Ukrainian millers’ ability to earn steadily in international markets. Previously, exports helped increase enterprise capacity and reduce product costs, but after the destruction of familiar routes, this model has worked much worse.

Currently, flour exports are essentially maintained by rail and road transport. For a mass and relatively inexpensive product, this is an extremely complex scheme. It makes deliveries more expensive, reduces competitiveness, and limits the possibilities for rapid sales expansion.

In this context, NAnews — Israel News | Nikk.Agency draws attention to an important detail: unlike raw grain, processed products are particularly sensitive to logistics costs. Therefore, even a slight increase in transportation costs can literally eat away at margins and push Ukrainian suppliers out of foreign markets, including directions where demand for quality flour remains.

The loss of familiar markets has become a systemic problem

According to market participants, Ukraine has practically lost almost all familiar export destinations for flour. Moldova remains, and a window has opened to the European Union, where a significant portion of supplies is now going. But this has not been enough to compensate for the overall failure.

That is why the figure of 66.8 thousand tons by the end of 2025 is perceived as historically weak. This is no longer a local dip but a 20-year low, reflecting a deep restructuring of the entire grain processing sector under war conditions.

What this means for Israel and the region

Israel remains an important buyer, but the market is unstable

For Israel, a place in the top five largest buyers of Ukrainian flour is a signal of maintaining trade ties even during a period of serious turbulence. In the Middle East food market, the stability of supplies always has special significance, and Ukrainian agricultural products have long occupied a prominent place in the region.

However, at the same time, this statistic also shows the vulnerability of the entire chain. If Ukraine’s exports continue to shrink and logistics do not receive new solutions, the volume of supplies to countries in the region may remain limited. This applies not only to Israel but also to other importers who depend on stable access to processed grain products.

The industry is looking for survival options

Against this backdrop, Ukrainian specialists are planning to discuss the challenges and prospects of exporting grain processing and bakery products at the specialized forum “Bread Industry 2026,” which will be held on May 12-13 in Kyiv. For the industry, this is no longer just a professional meeting but an attempt to find practical answers to the question of how to maintain export potential in new conditions.

For now, the main conclusion remains harsh. Ukraine still holds on to external flour markets, but volumes are decreasing, imports of its own flour are growing, and hopes for a quick turnaround in the situation are hardly expressed by market participants. For the Israeli reader, the importance lies not only in the agricultural aspect but also in the broader regional context: food stability increasingly depends not on the harvest itself but on war, logistics, and the ability of producers to reach buyers through closed and more expensive routes.