Photo: EPA
Ukrainian farmers are adjusting production because of the war and unfavorable weather conditions, prioritizing the most profitable crops. However, rising production costs and falling purchase prices are still eroding their profits. Farmers accuse traders of deliberately driving prices down, Suspilne Poltava reports, citing Oleh Slyzko, head of the Poltava District Farmers Association.
According to Slyzko, purchase prices for agricultural products have dropped sharply while production costs have risen.
“This year, fourth-grade wheat is selling for 4,400 hryvnias per tonne. Last year, prices were 9,000–10,000 hryvnias. Diesel fuel and mineral fertilizers have become more expensive, so this is arguably the hardest year since the start of the full-scale invasion,” he said.
Slyzko acknowledged that blocked ports and slower exports had affected the market, but argued that major traders were pushing prices even lower. Sunflower prices, he said, had fallen from 33,000–35,000 hryvnias per tonne in spring to 15,000–16,000 hryvnias now.
“This is not simply a matter of export restrictions and expensive storage. It is an artificial price collapse, and we understand that,” he said.
Farmers must balance growing the most profitable crops with maintaining sustainable production in the years ahead. Sunflower is currently the most profitable crop, Slyzko said, but it cannot be planted on the same land every year and must be included in a crop rotation.
He also criticized the promotion of sunflower meal exports by large agricultural holdings, arguing that prioritizing these shipments over wheat and corn could restrict grain exports and leave around 40% of farmers unable to operate normally, further depressing prices.
Slyzko called on the government to take greater control of agricultural exports. He argued that state-owned companies could buy produce from farmers at fair prices and export it on behalf of the state, avoiding speculation and excessive profits by intermediaries.
Another option for farmers is to store grain until market conditions improve. However, many cannot do so because public and private grain elevators are already full.
Meanwhile, farmers must continue paying land rent, wages and taxes, repaying debts and saving for the next planting season. Slyzko estimates that 20% of Ukrainian farmers may be unable to continue operating after the current season.
Ukraine is expected to harvest approximately 60.4 million tonnes of grain this year, broadly comparable to last year’s output. Wheat production is projected to exceed domestic consumption needs by more than four times.
