Reduction of Winter Crop Areas in Ukraine

In Ukraine, a reduction in the sown areas for winter crops, particularly wheat, is expected. The main factors are export restrictions and high logistics costs. Taras Vysotsky, the Minister of Agrarian Policy and Food, confirmed that the area under winter wheat will decrease, but no changes are anticipated for winter rapeseed, and the sowing campaign has already begun. Minor changes are also forecasted for winter barley. Vysotsky noted that the reduction in wheat areas does not threaten Ukraine's food security, as the domestic consumption is about 6 million tons, while annual production is 23-25 million tons. Despite logistical issues, lending to the agricultural sector continues to grow, with agricultural producers receiving about 2 billion hryvnias in preferential loans over the past week. The total loan portfolio of the industry reached 105 billion hryvnias, which is 25 billion hryvnias more compared to the same period last year. Ukraine has exhausted its quota for duty-free wheat supplies to the EU, and further exports will require the payment of duties, which reduces the competitiveness of Ukrainian grain in the European market.

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