Oilseed Export Priority Threatens Ukraine's Grain Farmers

Ukraine's largest farming union, UAC, is warning that prioritizing oilseed exports could have severe consequences for grain farmers.

The union claims that giving oilseeds export preference would leave farmers with excessive grain stocks and sharply lower incomes due to the high logistics costs associated with exporting grains.

Agriculture minister-backed plans to prioritize transport capacity for higher-value goods, such as oilseeds, when export routes are constrained, could exacerbate this issue. Oilseeds already have an export advantage due to their higher value, making it easier to absorb substantial logistics costs, UAC said.

Grain exports have fallen by more than 60% in September, while shipments of oilseeds and vegetable oils have declined by about one-third, according to agriculture ministry data. This has led to grain stocks increasing by 10 million metric tons from a year earlier to 24.6 million tons as of September 1.

The sharp drop in exports would push carryover stocks to a record 24 million tons, up from 11.6 million tons a season earlier, consultancy APK-Inform said this month. Wheat and corn stocks could also rise significantly, with wheat carryover stocks potentially reaching a record 11.7 million tons at the start of the 2027/28 season.