Strikes on agricultural processing facilities increase risks for Ukraine’s agricultural sector — UAC

Russian strikes on agricultural processing facilities are creating additional risks for Ukraine’s agricultural sector and could affect food supply chains, Ukrainian Agrarian Council Deputy Chairman Denys Marchuk said. According to him, reduced processing capacity could affect demand for raw materials and farmers’ ability to market their crops.

The UAC notes that stable operation of processing facilities is important not only for the domestic market but also for agricultural producers. Damage to such facilities could complicate crop sales and increase farmers’ dependence on individual marketing channels.

Against this backdrop, Marchuk also called for a review of soybean and rapeseed export conditions. Ukraine currently applies a 10% export duty on these crops, introduced in part to encourage domestic processing.

According to the UAC, producers should retain the ability to sell their products both domestically and abroad amid wartime risks. The organization believes this would reduce farmers’ dependence on conditions in a single sales channel.

The UAC has previously opposed the 10% export duty on soybeans and rapeseed, arguing that smaller farms often cannot export their products independently and therefore cannot benefit from the available duty exemption. The organization also believes the current conditions may put pressure on domestic purchase prices.

Tags: Ukraine, soybean, rapeseed, food security, Ukrainian Agrarian Council, UAC, agricultural sector