Today, in view of the Russian invasion, Ukrainian agribusiness works in extremely difficult conditions and demonstrates flexibility and efficiency. The reorientation of farmers is mostly related to production costs, says Svitlana Lytvyn from the Ukrainian Agribusiness Club (UKAB). Growing grain is becoming more and more unprofitable, since free export by sea is impossible. In addition, the price of fuel and fertilizers has risen. Therefore, farmers now have no means for full-fledged sowing and they are afraid of an uncertain future," Lytvyn explains.
On the trading platforms of agricultural products in Ukraine, rapeseed prices are twice as high as for wheat. The agrarians themselves report this: «There are many problems with the sale of wheat. There are almost no profits, but farmers at least want to recoup the invested funds,» says Viktor Goncharenko, president of the Union of Farmers and Private Landowners of Ukraine
Ukraine has enough capacity to process sunflower seeds into oil for export. Before the Russian invasion, Ukraine accounted for half of the world's sunflower oil exports, which were exported to 107 countries. Mostly to Europe. Exports are now recovering.
The task will be to export vegetable oil from Polish ports to third countries. The planned production capacity is 2 million tons of oil per year," said the First Deputy Minister.
It will be recalled that last week Ukraine and Poland signed a memorandum on the construction of a pipeline to transport oil from Ukraine to Poland.
As Taras Vysotsky emphasizes, there is no such route anywhere in the world. The transport corridor is expected to start operating next year.
Ukrainian farmers choose oil crops, also because, in the end, it is not clear how the «food agreement» reached in July, mediated by the UN and Turkey, will work in the future. Therefore, farmers are increasingly sowing rapeseed — 70% of the area has already been sown, as well as sunflower and soybeans.
Source: DW publication
