The Ukrainian Agrarian Council (UAC), which represents the interests of more than 1,400 small and medium-sized agricultural enterprises in Ukraine, has appealed to Prime Minister Serhiy Koretsky, urging him to immediately adopt anti-crisis measures due to the suspension of ship calls at Ukrainian Black Sea ports.
This was reported by Dengi.ua .
Why the Crisis in the Agricultural Sector Is Worse Than in 2022
The UAC emphasizes that the combination of problems with maritime logistics, damaged port infrastructure, export restrictions, and rising resource costs poses a threat of unprofitable production, business bankruptcies, and a disruption of the production cycle.
“The challenges currently facing the agricultural sector, when considered as a combination of factors, are significantly more dangerous and have more severe consequences than even those of 2022. A crisis of unprofitability in production is rapidly looming over the agricultural sector, which will have a negative multiplier effect on the entire economy,” the UAC’s statement reads.
How Much Grain Will Ukraine Be Unable to Export Due to the Port Blockade
According to estimates by UAC experts, in the 2026/2027 marketing year, production of major grain and oilseed crops will total approximately 81.4 million metric tons, and taking into account carryover stocks, the total volume of produce available for consumption and export will reach about 85 million metric tons.
At the same time, Ukraine needs to export about 67 million metric tons of agricultural products. However, if seaports remain closed, export capacity could drop to 1.7 million metric tons per month, which would create a surplus of products on the domestic market.
“A prolonged blockade of seaports threatens to create a massive surplus of goods - between 27.4 and 32.4 million metric tons of agricultural products will put pressure on the market throughout the entire marketing year,” the UAC notes.
How Much Have Grain Purchase Prices Fallen in Ukraine?
According to the association, purchase prices have already begun to plummet due to traders halting purchases. In some cases, they have fallen to 7,000 UAH per metric ton, which is below the full cost of production.
“The situation calls for immediate solutions. This is not a matter of a typical seasonal downturn in market conditions, but rather the risk of a disruption in the production cycle in one of the key sectors of the Ukrainian economy,” the UAC emphasized.
What Anti-crisis Measures is the UAC Proposing to the Government?
To prevent a large-scale economic and banking crisis, farmers are calling on the government to introduce a package of anti-crisis measures, specifically:
- preferential loans to replenish working capital for the fall planting season;
- restructuring of existing agricultural loans;
- government loan guarantees;
- a review of certain terms of the “5-7-9%” program.
The Ukrainian Agrarian Council also proposes conducting an audit of damage to the port infrastructure of Greater Odesa and the Danube ports, identifying priority facilities for restoration, and allocating funding for the repair and modernization of transshipment facilities.
“The extraordinary circumstances facing the agricultural sector and the country’s economy as a whole require equally extraordinary solutions that go beyond the authority of the Ministry of Agrarian Policy and can be resolved exclusively at the level of the Cabinet of Ministers of Ukraine,” the appeal states.
Farmers also called on the prime minister to hold a personal meeting with representatives of the Ukrainian Agrarian Council to discuss urgent measures to support the sector.
