Ukraine Farm Union Warns Oilseed Export Priority Would Hurt Grain Farmers

The Ukrainian agriculture ministry's proposal to prioritize oilseed exports over grains has sparked concerns from the country's largest farming union, UAC. The union warns that this move would leave farmers with excessive grain stocks and sharply lower incomes.

The proposal aims to give higher-value goods preferential access to transport capacity when export routes are constrained. However, UAC argues that oilseeds already have an export advantage due to their higher value, which makes it easier to absorb substantial logistics costs.

Agriculture ministry data show grain exports have fallen by more than 60% in September, while shipments of oilseeds and vegetable oils have declined by about one-third. UAC fears that farmers would bear the brunt of the proposed policy change, with grain filling storage facilities and marketing opportunities shrinking.

The union also points out that Ukrainian grain stocks have already increased by 10 million metric tons from a year earlier to 24.6 million tons as of September 1. Consultancy APK-Inform predicts that the sharp drop in exports would push carryover stocks to a record 24 million tons, up from 11.6 million tons a season earlier.