Ukraine's agricultural sector is facing severe challenges due to a combination of war and drought, which have disrupted traditional export routes and left farmers struggling to sell their harvests. Russian attacks on civilian ships have effectively halted operations at the ports in the Odesa region, which previously handled about 90% of Ukraine's agricultural exports. The Ukrainian government is exploring alternative routes via rail, road, and other waterways, but experts warn these temporary solutions cannot fully replace the ports.
Denys Marchuk, deputy chairman of the All-Ukrainian Agrarian Council, highlighted that farmers have already harvested over 28 million tons of grains and pulses, but much of this cannot be sold. This has led to a shortage of cash needed to complete the harvest and plant winter crops, which typically begin at the end of August in southern regions. Marchuk predicted the situation will worsen as grain and oilseed crops, harvested later, add to the crisis.
Storage capacity is also a major issue, particularly in front-line regions where many silos have been destroyed. Farmers are considering leaving corn in the fields until spring due to high drying costs and lack of viable selling options. Domestic prices for food-grade wheat have fallen by 30 to 35%, making it difficult for farmers to cover production costs. The Ukrainian Ministry of Agrarian Policy and Food estimates annual losses from unsold produce could reach approximately $20.5 billion.
The Ukrainian government is working to find new export routes, but extreme heat and drought have reduced the Danube's transport capacity, and rail and road transport face significant challenges. Agriculture Minister Taras Vysotsky emphasized the need to restore safe shipping routes to the Odesa ports as a top priority. Meanwhile, experts like Oleg Nivievskyi from the Kyiv School of Economics argue that Ukraine needs a long-term export strategy to mitigate the impact of such blockades.