Ukraine Farm Union Warns Oilseed Export Priority Could Devastate Grain Producers

Ukraine's largest farming union, UAC, has expressed concerns that prioritizing oilseed exports could severely impact grain farmers. The proposal to allocate transport capacity for higher-value goods during export constraints would disproportionately affect grain producers.

The union stated that oilseeds already have an export advantage due to their higher value, making it easier to absorb logistics costs. In contrast, grains account for a larger share of logistics costs, which would be exacerbated by the proposed policy change.

Agriculture ministry data show a significant decline in grain exports, with a 60% drop in September shipments. Meanwhile, oilseed and vegetable oil exports have decreased by around one-third. The union warned that farmers would bear the brunt of the proposed policy change, facing reduced storage capacity, marketing opportunities, and falling purchase prices.

The agriculture ministry has reported a nearly 30% decrease in prices paid to producers for third-grade milling wheat over the past two months. Ukrainian grain stocks have already increased by 10 million metric tons from last year's levels, reaching 24.6 million tons as of September 1. Consultancy APK-Inform predicts that carryover stocks could reach a record 24 million tons, with wheat and corn stocks expected to rise significantly.