Crimean Grain Harvest in Jeopardy as Prices Plummet Below Production Cost
Crimean farmers are struggling to sell their grain due to low demand and prices below production cost. The peninsula is expected to harvest over two million metric tons of grain this year, but local grain elevators can only accept a portion of the harvest.
The Crimean Ministry of Agriculture under the occupying authorities noted that the peninsula does not consume its own grain production, resulting in a significant surplus. Agricultural enterprises have faced a new problem, their grain is not in demand among wholesale buyers, and those who are willing to buy it offer prices below cost.
According to Oleg Zubkov, owner of the large agricultural enterprise 'Zelenogorsk,' the cost of production per kilogram of wheat this year is 12-15 rubles, while it can sometimes be sold for as little as 10 rubles. 'This year, the price of grain is completely inadequate. The cost of production for this grain is high, yet they aren’t even paying 6-8 rubles per kilogram of wheat,' Zubkov lamented.
The situation is further complicated by a fuel shortage, logistics problems, and regular power outages, which bring grain elevators to a standstill. The occupying authorities are promising farmers assistance with logistics financing, loan extensions, and adjustments to lease payments.