By KYIV. Nov 6 (Interfax-Ukraine) – In Ukraine, by the end of 2023, a decrease in losses in the agricultural sector from growing grains and oilseeds is predicted, but the production of three out of five main crops will remain unprofitable.
This forecast was announced by the press service of the Ministry of Agrarian Policy and Food.
At the same time, livestock farming as a whole will remain profitable, with the exception of live weight production of cattle.
“Although in 2023 there is a recovery in profitability for some crops, because in 2022 the cultivation of all types of grains and oilseeds was unprofitable, we should not forget that the 2021 season was very successful for producers of grains and oilseeds in Ukraine … Success of 2021 created resources for sustainability in 2022, while at the beginning of 2023 the margin of safety of the agricultural sector was much smaller,” the ministry’s press service cited data from the study “Ukraine: The Impact of War on the Profitability of Agricultural Production.”
According to the results of the study, the greatest impact on the level of profitability of the agricultural sector of Ukraine during 2022-2023 was exerted by export logistics, devaluation of the hryvnia and rising prices for material and technical resources.
While before Russia’s full-scale invasion of Ukraine, 95% of grains and oilseeds were exported through Black Sea ports, from February to August 2022 agricultural products were exported only through Danube ports, railways and roads to/through EU countries with very high transportation and transshipment costs. The Black Sea Grain Initiative resumed exports through the Black Sea ports of Ukraine with a result of 33 million tonnes from August 2022 to July 2023, which contributed to a decrease in world food prices and supported the Ukrainian agricultural sector, the study notes.
In addition, the Ministry of Agrarian Policy stated that the suspension of the Black Sea Grain Initiative in July 2023 had a negative impact on the export of domestic agricultural products.
