31.07.2026
The sea blockade has significantly complicated the export of Ukrainian agricultural products, which is already leading to a fall in domestic grain prices. Farmers risk being left without working capital to conduct the autumn sowing campaign. The way out may be large-scale international financial support, since the state's own resources are insufficient to stabilize the situation.
This was stated by the Deputy Chairman of the Ukrainian Agri Council, Denys Marchuk.
According to him, new vessels are not entering the ports of Greater Odesa due to security risks, which has led to a sharp reduction in grain exports. This is happening during the period of active harvesting, when agricultural producers need to sell their products to finance further field work, pay wages, purchase fuel, and pay taxes.
"Farmers are in a situation where they cannot fully sell their products, while production costs remain extremely high. If, on average, about a thousand dollars are needed per hectare of the sowing campaign, then with a cultivated area of 23–24 million hectares, the agricultural sector needs an enormous financial resource — about 20 billion dollars per year. The Ukrainian budget does not have the ability to provide such volumes of support on its own. That is why it is important to attract international financial institutions, partner countries, and the European Commission," the Deputy Chairman of the UAC emphasized.
The blocking of exports has already led to a collapse in domestic purchase prices. Producers are forced to sell grain significantly cheaper than its real market value, which creates direct losses and deprives farms of working capital.
"More than 12 million tonnes of the grain harvest have been gathered in Ukraine. Due to the stoppage of exports, a surplus of products has formed inside the country, and prices have literally collapsed. Grain is bought from the field at UAH 5,000–6,000/t, whereas in European ports it costs more than 260 dollars. In fact, producers are already operating at a loss, since the income received does not cover the cost of cultivation," Denys Marchuk noted.
At the same time, he emphasized that the problem goes beyond the agricultural industry. Agriculture provides more than half of Ukrainian exports, so the reduction in supplies directly affects foreign currency earnings.
"More than 60% of Ukrainian exports today consist of agricultural products. If Ukraine is unable to export for a long time, the country will lose a significant part of its foreign currency earnings, which will result in a weakening of the hryvnia and a rise in the price of a significant number of goods. For the agricultural sector to operate stably, Ukraine needs to ship at least 6 million tonnes of grain every month. In the autumn, the situation will only worsen, since the harvesting of corn will begin. Without stable exports, the shortage of storage capacity may reach 7–8 million tonnes, and polymer sleeves (grain bags) are only a partial solution to this problem," the Deputy Chairman of the UAC added.
According to Denys Marchuk, even despite the difficult conditions, Ukraine is still able to provide itself with food. At the same time, without the restoration of stable exports and large-scale international financial support, the agricultural sector risks losing the ability to maintain current production volumes, which will negatively affect both Ukraine's economy and global food security.
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