Ukraine: farmers shift to oilseeds
Ahead of the next sowing campaign, farms are reshaping their crop mix in favor of sunflower, soybeans and rapeseed: these crops give higher margins and cost less to transport and store than grain. Ukraine's Ministry of Agrarian Policy and Food reported this on October 23 following an industry discussion on crop exports with Deputy Minister Vitalii Holovnia.
Key figures
- Sunflower, soybeans, rapeseed
- Exports: 2.4 million t a month
- Half of what is needed
- Logistics: over €50/t (≈ $56)
- Acreage: no sharp drop
- Wheat area: −15–17%
Details
Limited export capacity, rising logistics costs and the risk of a working-capital shortage are adding pressure on farmers ahead of sowing. According to Vitalii Holovnia, delays in selling produce push back revenue and limit purchases of seed, fertilizer, fuel and other inputs for the coming season. The government is focusing on wider access to credit, preserving companies' working capital, closing the storage capacity gap, developing logistics and finding alternative export routes. A reduction in sown area is expected, but not a major one.
Logistics by the numbers
Because of limited access to deep-water routes and disruptions on traditional export corridors, monthly exports have fallen to 2.4 million tonnes — half of what is needed. Extra logistics costs exceed €50 per tonne (≈ $56), cutting into profitability. Oilseeds cost less to transport and store than grain, which is one reason farms are changing their crop mix.
Context
A day earlier, on October 22, Minister Taras Vysotskyi cited a preliminary ministry estimate: next season the wheat area may shrink by 15–17%, to roughly 4–4.2 million ha, soybean and sunflower areas may grow, and winter rapeseed may stay at last year's level of about 1.3 million ha. Subsidized lending for farmers has been extended to August 31, 2027.
What it means for buyers
For a farm in Ukraine, crop revenue arrives later and transport costs more, so purchases of seed, fertilizer and fuel for spring have to be planned around working capital and available credit. Those switching to sunflower, soybeans or rapeseed will need seed for those crops by planting time.
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