Minagro forecasts growth in grain and oilseed harvest

Ukraine may harvest over 80 million tons of grain and oilseed crops this year. According to the Ministry of Agrarian Policy, the total harvest will be about 1.5-2% higher than last year, despite the war and problems with export logistics.

This was reported in an interview with RBC-Ukraine by the Minister of Agrarian Policy and Food Taras Vysotskyi, informs the publication's journalist Dmytro Sydorov.

According to him, the results for the main crops allow us to assess this year's harvest as good. The total gross harvest of grain and oilseed crops should exceed 80 million tons.

"Given that the war is ongoing, this year's harvest can be assessed as good. According to our expectations, it may be 1.5-2% higher than last year", - said Vysotskyi.

At the same time, the main problem for farmers is not the volume of production, but the ability to profitably sell the grown products abroad. Due to restrictions on maritime exports, agricultural companies have to use the Danube, railway and road routes through the western border more actively.

World prices for agricultural products have partially risen due to reduced supplies from the Black Sea region, but this is not enough to compensate for the increase in logistics costs. According to the minister, this has affected grains the most, some of whose export supplies have already become unprofitable.

In particular, a ton of wheat currently costs about $275, but the additional logistics through the Danube ports alone can exceed $100 per ton. The Ministry of Agrarian Policy notes that under current conditions, the export economics of a significant part of wheat and corn are not working out.

Thus, a good harvest creates an additional challenge for the agricultural sector: Ukraine has enough products, but export opportunities remain limited due to the blockade of traditional maritime routes.