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27 April 2024

News

08.12.2023

Agriculture in wartime: the second year of struggle for survival

The revival of agriculture in the conditions of war is an extremely challenging task for Ukrainian farmers. Rather positive, at first side, indicators of 2023 actually entail significant financial losses due to the low price of grain and oilseeds in the domestic market, restricted and complicated export. Production of most grain and oil crops is unprofitable. And unless some changes are implemented, indicators of the next year are unlikely to be positive.

Currently, achieving of the pre-war indicators is out of question since the trends of 2023 only show slightly better dynamics compared to 2022:

  • Production of grain crops is estimated at 60.8 million tons, which is 10% more than the previous year. Owing to favourable weather conditions, despite a decrease in fertilizer use, Ukrainian farmers still managed to achieve good yield indicators. However, production volume remains 31% below the 2021 indicators;
  • Production of oilseeds increased by 18% to 20.7 million tons. In this case, in addition to favourable weather conditions, a change in the structure of sown areas in Ukraine played a role as well. Presence of developed internal processing, lower physical yield of oilseeds compared to grain crops, higher price and, accordingly, smaller share of significant logistics costs during export make oilseeds more attractive for cultivation. However, the production volume remains 10% below the 2021 figures;
  • Production of sugar beet increased by 29% to 11.7 million tons. This indicator slightly exceeded the pre-war volume, 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 beet has not been grown due to unfavourable natural and climatic conditions for this crop;
  • Production of all kinds of meat increased by 3% to 3.1 million tons in 2023. The growth is mainly attributed to poultry farming. However, production volume remains 9% below the 2021 figures;
  • Milk production indicators continue to decline: in 2023 they decreased by 2% to 7.5 million tons. The similar situation is observed with chicken eggs produced by 5% less - 11.0 billion pcs in 2023.

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Owing to operation of the grain corridor, which enabled to export transitional residues from the beginning of the war, in 2023 the indicators of export of agricultural products were higher compared to 2022. There are the following trends:

  • Export of grain crops increased by 11% to 43 million tons. However, this indicator is 15% lower than the pre-war 2021;
  • Export of oilseeds decreased by 6% to 7.4 million tons. This indicator is 95% higher than the pre-war 2021 due to the forced factors: increase in the production of oilseeds as well as beginning of the sunflower seeds export under the conditions when domestic processing decreased amidst export issues with sunflower oil. At the end of 2023, export of sunflower seeds is minimal.
  • Export of vegetable oil in 2023 amounted to 6.1 million tons, which is 30% higher than the previous year. Compared to the pre-war year 2021, the growth is 10%.

 

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  • Baker TILLY
  • Agroresurs
  • AMAKO
  • Limagrain
  • Zeppelin
  • Amazone
  • LNZ Group
  •  Agricom Group
  • horsch
  • uahk
  • Сygnet
  • Syngenta
  • Agco
  • Agroregion
  • Eridon
  • MHP
  • Maschionet
  • Maisadour
  • DuPont Pioneer
  • Agroscop
  • Agrimatco
  • NCH Advisors
  • Continental farmers Group
  • credit agricole
  • claas
  • john deer
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