Ukraine's Oilseed Prioritization Risks Overcrowding Grain Storage Facilities
Ukraine's grain market is facing potential complications due to prioritizing oilseeds and processed oilseed products in export logistics. The Ukrainian Agrarian Council warns that this could increase pressure on grain producers, already struggling with overcrowded storage facilities.
According to Deputy Chairman Denys Marchuk, oilseeds have stronger export positions due to their higher value, which makes it easier to absorb significant logistics costs. Grains, on the other hand, account for a larger share of logistics costs in their final product price.
The Council believes that prioritizing exports of oilseeds, oilcake, and meal could further restrict grain marketing opportunities. This would lead to farmers' storage facilities remaining full while grain purchase prices face pressure. Producers in frontline regions would be particularly affected, as they have fewer options to sell grain at acceptable prices.
The Ukrainian Agrarian Council suggests that if the government introduces preferences in export logistics, priority support should be directed to farmers in frontline areas. Such mechanisms should cover all major agricultural crops rather than selected types of products.