For the first time in 50 years, Ukrainian grain did not bring farmers a profit

In this year's agrarian sowing, they plan to focus on increasing the area for sowing oil crops, which will lead to a partial decrease in gross grain production in Ukraine. Delo.ua writes about it.

As noted, with a drop in cultivation volumes, grain yield, as well as continued difficulties with logistics, Ukraine is guaranteed to provide for its domestic market, and exports will fall in half.

The Ukrainian Union of Industrialists and Entrepreneurs (USPP) notes that the decrease in grain cultivation in Ukraine will have a negative impact on the world market. Global forecasts indicate that there will be a smaller wheat harvest this year. In such a case, the prices of the products will rise, and if the rich countries balance it more or less, then the poor countries, especially on the African continent and some South American countries, will have significant problems.

Read also: Ukraine reduced wheat exports, increased corn and sunflower exports

According to the president of USPP Anatoliy Kinakh, the increase in grain prices on world markets (+30-40% according to forecasts) does not compensate Ukrainian farmers for the costs, because the cost of logistics has increased 4 times since the beginning of the war, and there may be another increase of 50-100%. That is, if wheat costs $280-300 on the world market, then it costs $110-115 on the Ukrainian market - precisely because of the difficulty and cost of logistics, the blocking of exports by the Russian aggressor.

"For the first time in the last 50 years, Ukrainian grain did not bring farmers a profit. All farmers who sowed wheat suffered a loss, so this year they are thinking whether to sow or not. Therefore, we hope that the UN understands this. In addition to Turkey, France should also join the active lobbying of the grain initiative. Currently, 10 French-speaking post-colonial countries are particularly suffering from food shortages. Accordingly, the efforts of Great Britain, the countries of the Middle East — UAE, Saudi Arabia, etc. are still needed. They are interested in receiving food from Ukraine," the USPP explained.

China should also play its role as a mediator, believes the vice-president of the USPP, the president of the Ukrainian Agrarian Confederation, Leonid Kozachenko.

"Before the Russian Federation's full-scale aggression against Ukraine, the People's Republic of China tripled its food reserves (wheat, corn). And even this does not solve for them the problem of a decrease in world wheat yields - because once production is stopped somewhere, it is not so easy to restore it again. Therefore, China should also lobby for the supply of Ukrainian grain to international markets," concluded Leonid Kozachenko.

We will remind, currently the demand for Ukrainian corn is created by China.

In this year's agrarian sowing, they plan to focus on increasing the area for sowing oil crops, which will lead to a partial decrease in gross grain production in Ukraine. Delo.ua writes about it.
As noted, with a drop in cultivation volumes, grain yield, as well as continued difficulties with logistics, Ukraine is guaranteed to provide for its domestic market, and exports will fall in half.
The Ukrainian Union of Industrialists and Entrepreneurs (USPP) notes that the decrease in grain cultivation in Ukraine will have a negative impact on the world market. Global forecasts indicate that there will be a smaller wheat harvest this year. In such a case, the prices of the products will rise, and if the rich countries balance it more or less, then the poor countries, especially on the African continent and some South American countries, will have significant problems.
Read also: Ukraine reduced wheat exports, increased corn and sunflower exports
According to the president of USPP Anatoliy Kinakh, the increase in grain prices on world markets (+30-40% according to forecasts) does not compensate Ukrainian farmers for the costs, because the cost of logistics has increased 4 times since the beginning of the war, and there may be another increase of 50-100%. That is, if wheat costs $280-300 on the world market, then it costs $110-115 on the Ukrainian market - precisely because of the difficulty and cost of logistics, the blocking of exports by the Russian aggressor.
"For the first time in the last 50 years, Ukrainian grain did not bring farmers a profit. All farmers who sowed wheat suffered a loss, so this year they are thinking whether to sow or not. Therefore, we hope that the UN understands this. In addition to Turkey, France should also join the active lobbying of the grain initiative. Currently, 10 French-speaking post-colonial countries are particularly suffering from food shortages. Accordingly, the efforts of Great Britain, the countries of the Middle East — UAE, Saudi Arabia, etc. are still needed. They are interested in receiving food from Ukraine," the USPP explained.
China should also play its role as a mediator, believes the vice-president of the USPP, the president of the Ukrainian Agrarian Confederation, Leonid Kozachenko.
"Before the Russian Federation's full-scale aggression against Ukraine, the People's Republic of China tripled its food reserves (wheat, corn). And even this does not solve for them the problem of a decrease in world wheat yields - because once production is stopped somewhere, it is not so easy to restore it again. Therefore, China should also lobby for the supply of Ukrainian grain to international markets," concluded Leonid Kozachenko.
We will remind, currently the demand for Ukrainian corn is created by China.
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