Ukrainian farmers urge government to avert bankruptcy wave amid Black Sea export disruption

The Ukrainian Agri Council (VAR) has appealed to Prime Minister Serhii Koretskyi to urgently introduce emergency support measures following the suspension of vessel calls at Ukraine’s deep-water Black Sea ports.

The association warned that the combination of disrupted maritime logistics, damaged port infrastructure, export restrictions and rising production costs is threatening farm profitability, increasing the risk of bankruptcies and disrupting the agricultural production cycle.

“The challenges facing Ukraine’s agricultural sector today are, in terms of their combined impact, even more severe than those experienced in 2022. The industry is rapidly approaching a profitability crisis that could have serious multiplier effects across the entire economy,” the statement said.

According to VAR estimates, Ukraine is expected to produce about 81.4 mln tons of major grains and oilseeds in the 2026/27 marketing year. Including carry-over stocks, total supplies available for domestic use and exports will reach around 85 mln tons.

At the same time, the country needs to export about 67 mln tons of agricultural commodities. However, if deep-water seaports remain closed, export capacity could fall to just 1.7 mln tons per month, creating a substantial surplus on the domestic market.

VAR estimates that a prolonged disruption of maritime exports could leave between 27.4 mln and 32.4 mln tons of agricultural products accumulated on the domestic market throughout the marketing year.

The association also noted that traders have already suspended purchases in many cases, triggering a sharp decline in farmgate prices. In some regions, prices have fallen to UAH 7,000 per ton, below the full cost of production.

“The situation requires immediate action. This is not a normal seasonal market downturn but a real threat to the continuity of production in one of Ukraine’s key economic sectors,” VAR stressed.

To prevent a broader economic and banking crisis, the association called on the government to introduce an emergency support package. Proposed measures include concessional working capital loans for the autumn planting campaign, restructuring of existing agricultural loans, state credit guarantees, and revisions to certain conditions of the government’s “5-7-9%” financing program.

VAR also proposed conducting a comprehensive assessment of damage to the port infrastructure in Greater Odesa and the Danube ports, identifying priority facilities for restoration, and allocating funding for the repair and modernization of cargo handling infrastructure.

The association emphasized that the exceptional challenges facing Ukraine’s agricultural sector and the national economy require extraordinary decisions that go beyond the authority of the Ministry of Agrarian Policy and can only be addressed at the Cabinet of Ministers level.

In addition, farmers called on the Prime Minister to hold a personal meeting with VAR representatives to discuss urgent measures needed to support the agricultural sector.

Tags: Ukraine, export, agricultural products, Ukrainian ports, war, Black Sea grain corridor