Ukrainian farmers are in difficult conditions and, with a harvest of over 28 million tons of grains and legumes this year, are unable to sell their products due to security and economic issues. According to Denis Marchuk, Vice President of the Ukrainian Agricultural Council, these problems have led to a liquidity shortage for completing the harvest and planting winter crops.
Domestic Market Situation and Export Challenges
Ukrainian farmers are facing a sharp decline in prices in the domestic market. According to estimates, Ukraine's agricultural production in July reached about 3.7 million tons, of which approximately 2.7 million tons were grains. This represents a decrease of about 25 percent compared to the previous month, and it is expected that this decline will exceed 50 percent in August.
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An analytical team in Ukraine has estimated that the export of agricultural products from the country will decrease by 9 million tons between August and October, resulting in losses of about 1.9 billion dollars. Farmers are currently forced to store their products due to their inability to export, which, along with storage issues, has created serious challenges for them.
Consequences of War and Drought
The security situation in the Black Sea has clearly impacted Ukraine's domestic market. Marchuk noted that farmers, due to a lack of adequate storage access, are deciding to leave their products in the fields. It is estimated that corn harvest this year will reach about 33 million tons, but a storage capacity shortage of up to 10 million tons in the coming months could exacerbate the crisis.
The Ukrainian Ministry of Agriculture has committed to making every effort to find new ways to export agricultural products via rail or road. However, the severe heat and drought have significantly reduced the transport capacity of the Danube and have posed serious challenges to Ukraine's exports. Additionally, rail and road transport face restrictions due to a shortage of truck drivers caused by the war.
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