Ukraine's Dairy Farms Reel from Grain Export Blockade and Unprofitable Milk Prices
Ukrainian dairy farms are facing severe financial difficulties due to the ongoing grain export blockade in Ukraine's Black Sea ports. The crisis has been exacerbated by unprofitable milk prices that have persisted for over six months, making it challenging for farmers to maintain their operations.
The situation is further complicated by the decline in grain's purchasing power. According to Olena Zhupinas, deputy director general of the Association of Milk Producers, a farm now needs to sell 14 tons of grain to buy 20 tons of diesel fuel, compared to just 4-5 tons before.
At one farm in Ukraine's Cherkasy region, which combines livestock production with grain and oilseed farming, storage facilities are already filled with winter wheat. The farm is now being offered UAH 6,500 per ton for grain, significantly lower than the previous price of UAH 12,000 per ton.
To mitigate their losses, farmers are planning to use part of their grain for compound feed production and process sunflower seeds, rapeseed, and soybeans themselves. However, this will not be enough to offset the significant decline in revenue from crop sales.