Wartime challenges pose significant financial losses for Ukrainian agrarians in 2023
Ukrainian agrarians, according to the Ukrainian Club of Agrarian Business (UCAB), in 2023 notably increased grain crops by 10%, oilseeds by 18%, sugar beets by 29%, and meat production by 3%, while experiencing a 2% decrease in milk and a 5% decrease in egg production compared to 2022.
“The revival of agriculture in wartime conditions is an extremely challenging task for Ukrainian farmers,” the business community’s statement said.
The seemingly good indicators of 2023 actually entail significant financial losses due to low prices for grain and oilseeds in the domestic market, restricted and complicated exports. The production of most grain and oil crops is unprofitable. And in the absence of changes, next year’s indicators are unlikely to be positive,”
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UCAB emphasized that there can be no talk of reaching pre-war indicators at the moment, as the trends of 2023 only show better dynamics compared to 2022.
Business association analysts pointed out the increase in the production of grain crops to 60.8 million tons, attributing it to favorable weather conditions, which, despite a decrease in fertilizer use, helped farmers achieve good yield results. Production volumes remain 31% lower than the 2021 figures.
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Regarding the increase in the production of oilseeds to 20.7 million tons, they explained that, in addition to weather conditions, the change in the structure of sown areas in Ukraine played a role.
The presence of advanced internal processing, lower physical yield of oilseeds compared to grains, their higher price, and consequently, a smaller share of significant logistical costs during export make oil crops more attractive for cultivation, according to the UCAB, adding that production volumes remain 10% lower than pre-war figures.
The production of sugar beets at 11.7 million tons exceeded pre-war levels, but only due to the fact that on the occupied territories and territories where hostilities are currently taking place, unlike grain and oil crops, sugar beets were not grown due to unfavorable natural-climatic conditions.
The growth in the production of all kinds of meat in 2023 to 3.1 million tons is mainly due to poultry farming, said UCAB. However, production volumes remain 9% lower than the 2021 figures.
Read also: Ukraine increases grain exports year-over-year
Milk production continues to decline; in 2023, it decreased by 2% to 7.5 million tons. A similar situation is observed with chicken eggs, of which 5% less will be produced in 2023 — 11 billion pieces, UCAB noted.
It was previously reported that the reopening of the border with Poland would impact Ukrainian cheese producers.
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