Barley prices in Ukraine continue to rise amid a shortage of supply and hryvnia devaluation

During the New Year holidays, the traditional decline in supply and demand for agricultural products in Ukraine was even more pronounced this year. This is due to the fact that farmers have enough working capital from selling rapeseed and sunflower in the first half of the season at high prices. Now they are refraining from selling amid the hryvnia devaluation and gradual rise in corn, wheat and barley prices.

The dollar continues to rise against the hryvnia and has increased by 0.5% to 42.4 UAH/$ since the beginning of the year, which, together with higher export prices, is contributing to the rapid growth of feed barley prices.

Over the past two weeks, export demand prices for feed barley in the ports of the Black Sea increased by 200-400 UAH/t to 9300-9500 UAH/t or 192-195 USD/t, and in the ports of the Danube – to 200-201 USD/t, supported by rising prices for feed corn to 205-206 USD/t and feed wheat to 207-209 USD/t.

Amid stronger export demand, domestic feed processors have raised prices for feed barley to 8500-8600 UAH/t on FCA terms, although two weeks ago maltsters offered the same prices for high quality malting barley.

In 2024/25 MY (as of January 8), Ukraine exported 1.976 mln tonnes of barley, up 71% year-on-year (1.15 mln tonnes). However, in January, exports decreased and in the first 8 days amounted to only 8 thsd tonnes compared to 80 thsd tonnes in the same period last year.

Demand for malting barley from Ukrainian processors remains low due to difficulties in selling malt on world markets. Therefore, prices for it are about 9000 UAH/t with delivery to the plant.

Global demand for beer and other alcoholic beverages continues to decline as the younger generation spends less time in clubs or socializing, preferring computers, gadgets and a healthy lifestyle.

In Ukraine, after the start of Russian aggression in 2022, sales of alcoholic beverages decreased by 53% compared to 2021, wine by 58%, and beer by 34%.

Tags: Ukraine, barley, prices