Address from the All-Ukrainian Agricultural Council
The All-Ukrainian Agricultural Council (AAC) has addressed Prime Minister Serhiy Koretsky regarding the blocking of maritime exports, which threatens the bankruptcy of farmers. The AAC notes that the challenges currently facing the agricultural sector are significantly more dangerous and severe in their consequences than those encountered even in 2022. The organization emphasized that a crisis of unprofitability in production is rapidly looming over the agricultural sector, which will have a negative multiplicative effect on the entire economy.
Forecast and support measures
The production forecast for major grain and oilseed crops in the 2026-2027 season is 81.4 million tons. Considering the carryover stocks, the total volume for consumption and export will reach 85 million tons. At the same time, Ukraine needs to export about 67 million tons of agricultural products. However, due to the suspension of maritime ports, export opportunities may shrink to 1.7 million tons per month, creating a surplus of products in the domestic market amounting to 27.4–32.4 million tons.
The purchasing prices for agricultural products have fallen to 7000 hryvnias per ton. Given the critical situation in the agricultural sector, the AAC has called for urgent action, as there is a risk of disruption in the production cycle in one of the key sectors of the Ukrainian economy. The organization emphasized:
“The situation requires immediate decisions. This is not about ordinary seasonal deterioration of the market conditions, but about the risk of disruption in the production cycle in one of the key sectors of the Ukrainian economy.”
Moreover, the AAC proposes a number of support measures, including:
- preferential lending for the autumn sowing;
- restructuring of existing agricultural loans;
- state guarantees for loans;
- revision of specific terms of the '5-7-9%' program.
The organization also called for an audit of the damage to the port infrastructure of Greater Odesa and the Danube ports, to identify priority facilities for restoration and direct funding for repairs and modernization of transshipment capacities. 'At the same time, farmers called on the Prime Minister to hold a personal meeting with representatives of the AAC to discuss urgent support measures for the industry', the organization noted.
It is also worth mentioning that Russia launched an attack on a civilian ship that was transporting Ukrainian sunflower oil to Egypt, which had 11 Turkish citizens on board. This situation further complicates the position of Ukrainian farmers, who are already facing numerous challenges amid military operations.
The situation in Ukraine's agricultural sector remains critical, and the actions proposed by the AAC could be decisive in preventing an economic catastrophe. The blocking of maritime exports not only threatens the independence of farmers but could also have serious consequences for the country's food security. If measures are not taken, the Ukrainian agricultural sector could find itself on the brink of bankruptcy, impacting the entire economy as a whole.
As the agricultural sector grapples with the dire consequences of blocked maritime exports, farmers are also facing challenges on multiple fronts. Recently, there have been calls from the farming community to address another pressing issue: the potential increase in rail freight rates. This could further strain the already fragile economic situation for farmers, making it crucial for the government to take decisive action. For more insights on how these changes might affect the agricultural landscape, see how farmers are urging the government to intervene.