Ukraine could cut planted area by nearly 40% if EU market access does not expand

Source:  Money.comments
стан посівів

Ukraine could reduce planted area by nearly 40% if it fails to expand agricultural exports to the European Union. Agriculture Minister Taras Vysotsky warned that unsold grain and vegetable oil stocks are building up, putting growing financial pressure on farmers.

Limited export capacity means the domestic market cannot absorb all of the country’s agricultural output. The war has severely disrupted traditional logistics and export routes, while excess grain and vegetable oil supplies are weighing on sales and producer revenues.

The lack of market access is already affecting preparations for the next planting campaign. If farmers cannot sell their crops in time, they have fewer funds available for seeds, fuel, fertilizers and other inputs needed for the next production cycle.

Ukraine sees greater access to the EU market as one of the main ways to ease the pressure. Higher shipments to Europe could help reduce domestic surpluses and provide farmers with the cash flow needed to maintain production.

However, Ukrainian agricultural exports remain a politically sensitive issue in the EU because of concerns over competition from local farmers. Without broader export opportunities, a sharp cut in planted area could reduce future harvests, lower foreign-currency earnings and add further pressure to Ukraine’s agricultural sector.

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