Ukrainian farmers may cut acreage of export-dependent crops

If the situation in the Black Sea remains unstable, it will gradually affect the entire agricultural sector. Logistics costs will rise, reducing production profitability. Under these conditions, farmers are likely to become more cautious about investing in expansion, machinery upgrades and new technologies.

This was stated by Vitaliy Shtempel, CFO of Agrein Group.

“This will definitely affect the crop mix. Some producers will reduce acreage of crops that are most dependent on exports and have a high share of logistics costs, while looking for more profitable alternatives. This means changes not only for individual companies but also a potential decline in the country’s export potential,” Vitaliy Shtempel said.

He added that many companies, including Agrein, are currently expanding their long-term storage capacity, for example by using grain bags. This allows producers to gain time and avoid selling their crops when prices are at their lowest. However, this is a forced solution rather than a full-fledged alternative to stable exports.

“For farmers, the use of temporary storage solutions means additional costs for grain conditioning, ventilation and continuous monitoring. Moreover, the longer the crops remain unsold, the more working capital is effectively tied up in inventories. Therefore, storage today is not only about preserving grain quality but also about financial losses,” Vitaliy Shtempel explained.

Tags: Ukraine, export, sown area