Ukraine Grain Exports Plunge, Threatening Farming Industry

Ukraine's agricultural sector is facing a severe crisis due to the suspension of ships at its Black Sea ports. The country needs to export around 67 million tonnes of agricultural products in the 2026/2027 marketing year, but with few exports leaving the country, farmers fear that prices will drop further.

The Ukrainian Agri Council (UAC) has warned that without immediate government action, the port blockade could trigger a liquidity crisis, reduce sown areas, and lead to the loss of agricultural production capacity as early as the coming season. UAC chairman Andrii Dykun stated, 'The combined challenges currently facing Ukraine's agricultural sector are significantly more dangerous and potentially more severe than even those of 2022.'

The situation is exacerbated by critically low water levels on the Danube, restricted access to the EU market, a shortage of drivers, and a sharp increase in production costs. Prices for wheat and rapeseed have dropped to around USD$160 per tonne, which is already below the full cost of production.