Ukraine Grain Production Faces 12-Million-Ton Decline Due to Export Crisis

Ukraine's agricultural sector is bracing for significant losses in grain production next year. According to Yevgen Osipov, CEO of Kernel, a leading Ukrainian agricultural holding company, there could be a 12-million-metric-ton decline in grain production if no solution is found to resume exports within the next six months.

Osipov stressed that it's difficult to make such forecasts today and expressed hope that solutions will be found soon. He noted that if no practical solution is found, farmers would likely reduce planted acreage, leading to a 12-million-metric-ton shortfall in grain production next year.

The current export situation is challenging for Ukraine due to seaports being closed. This has resulted in companies like Kernel pivoting to other business models. According to Osipov, about 50% of recent export operations were inefficient, prompting the need for new ways to operate.