Priority for oilseeds in Ukraine’s exports could lead to overcrowded grain storage facilities

Giving priority to oilseeds and processed oilseed products in export logistics could further complicate the situation on Ukraine’s grain market. The Ukrainian Agrarian Council believes that, amid limited export capacity and already overcrowded grain storage facilities, additional preferences for oilseeds would increase pressure on grain producers.

According to Ukrainian Agrarian Council Deputy Chairman Denys Marchuk, oilseeds already have stronger export positions even without additional advantages, as their higher value makes it easier to absorb significant logistics costs. For grains, logistics account for a much larger share of the final product price.

The Council warns that prioritizing exports of oilseeds, oilcake and meal could further restrict grain marketing opportunities. Under such conditions, farmers’ storage facilities would remain full, while grain purchase prices would continue to face pressure.

The consequences could be particularly severe for producers in frontline regions, where logistics are more complicated and expensive. Due to limited opportunities to move their products, these farms have fewer options to sell grain at acceptable prices.

The Ukrainian Agrarian Council believes that if the government introduces preferences in export logistics, priority support should be directed to farmers in frontline areas. At the same time, such mechanisms should cover all major agricultural crops rather than selected types of products.

Tags: export, oilseeds, logistics