What is the current status of the sowing season in Ukraine and what challenges are Ukrainian farmers facing this year?
Mykola Siutkin
You do business, we mitigate risks | Business Investment Risk Advisor | Co-founder of S&P Agency | Attorney | Co-publisher LDaily | Ironman
All of Ukraine is sowing as reported by the Ministry of Agrarian Policy and Food Ukraine. This news is significant for the country's economy, as agriculture plays a crucial role, with crops being one of the main exports.
All oblasts in Ukraine have started sowing spring crops, including grain and leguminous crops, covering a total of 500,000 hectares. The breakdown of crops sown included spring wheat at 107.7 thousand hectares, spring barley at 307.4 thousand hectares, peas at 57.7 thousand hectares, and oats at 26.4 thousand hectares.
The farmers of Ternopil, Vinnytsia, and Khmelnytskyi regions planted the most grain and leguminous crops, covering 94.7 thousand hectares, 74.3 thousand hectares, and 60.8 thousand hectares, respectively.
In the last week, a total of 207,000 hectares of grain and leguminous crops were sown, with 27,100 hectares being the leaders of the Ternopil Oblast agricultural producers.
The farmers of Vinnytsia, Volyn, Rivne, Ternopil, Khmelnytskyi, and Cherkasy regions have started planting sugar beets. Vinnytsia tops the list with 15.3 thousand hectares. Meanwhile, farmers in Odesa, Khmelnytskyi, and Bukovyna started sowing sunflower seeds.
The sowing season is an essential time for the agricultural sector, and Ukraine's farmers have started on a positive note this year. The sowing of crops on such a vast area will help increase food production, leading to better prices, and contribute to the country's economic growth.
In conclusion, the sowing of spring crops in Ukraine is underway, and the statistics show a positive outlook for the country's agricultural sector. As the season progresses, it will be exciting to see the results of this year's harvest and its impact on Ukraine's economy.
The sowing season in Ukraine is a critical time for farmers, as it sets the tone for the entire agricultural year. However, in 2023, farmers are expected to face even more challenges than in the past. The main issue is the lack of funds for sowing, which is caused by the gap between the world and domestic Ukrainian prices. This has led to a significant shortage of funds for farmers, making it difficult for them to purchase resources needed for sowing.
Another problem is the continued hostilities on Ukrainian territory, which has resulted in approximately 2 million hectares of mined fields. This has complicated or even made it impossible for farmers to work on these lands. These problems that were present in the previous year have partially transferred to this season.
One of the major challenges is the gap in prices for agricultural crops between the world and Ukrainian markets. This is partly due to problems with logistics and partly due to buyers' uncertainty that Ukrainian grain will be delivered on time. Currently, the "grain corridor" operates through the ports of Odessa, but such logistics does not solve all problems. Furthermore, the Russians slow down the inspection of ships loaded with grain or sent for loading to Ukraine. Due to the slowdown of ships, farmers lose money every day, which negatively affects their earnings.
Last year, the agricultural business was unprofitable, and according to UCAB analysts, 2023 will also be unprofitable for farmers. This will lead to farmers replacing the sowing of unprofitable crops with more profitable ones, such as oilseeds like sunflower, soybeans, and rapeseed. This is a forced measure because farmers do not yet have money to invest in production.
Another significant challenge is the shortage of fertilizers. About 60% of fertilizers will not be used by farmers due to their shortage, which will affect the yield and quality of crops. Export potential may fall three times as Ukraine will be able to collect about 34 million tons for domestic production, and for export, about 20 million tons. Such a fall will affect the agricultural business and the country's economy due to a shortfall in foreign exchange earnings. That is why farmers need financial support from the state and cheap loans. At the same time, importing countries will need to think about where to buy the amount of grain that Ukraine cannot supply.
The preparations for the post-Soviet campaign in 2023 have significantly improved due to the ongoing war, as Ukrainian agrarians had a chance to get acquainted with a lot of new wikis.
According to the Ministry of Agrarian Policy, a certain change in the sowing of agricultural crops is expected. The area under oilseeds will increase, including rapeseed, soybean, and sunflower. This is because the cost of one ton of oilseeds is higher, and the cost of logistics per ton is lower. That is, farmers will be able to earn more from 1 hectare. The Ministry believes this is a positive factor for farmers, macroeconomics, and not critical for crop rotation.
The Ministry of Agriculture also expects a decrease in wheat production, but it will still be twice as much for domestic needs. The number of crops sent to the domestic market will also increase, as was the case with buckwheat in 2022. In 2022, Ukrainian farmers managed to increase the area under sowing of buckwheat from 70,000 hectares to 120,000 hectares, which allowed them to cover the domestic demand.
In addition to the above challenges, the shortage of arable land due to the occupied territories and mined fields adds to the difficulty of the sowing season.
The issue of demining in Ukraine has been a top priority since the beginning of the full-scale war in the country. With the arrival of spring and the start of agricultural activities, the need for demining has become even more urgent. This is a daunting task that cannot be accomplished by the country's demining services alone.
To address this issue, an interdepartmental working group has been created at the level of the Cabinet of Ministers. Additionally, the Ukrainian government has turned to international partners for help, and a center for humanitarian demining is being established in Ukraine. The center will serve as an analytical hub and will coordinate efforts to identify and clear areas that require demining.
The situation in Ukraine is unique because of the large number of explosive devices that need to be cleared. Since the start of the conflict, about 313,000 different explosive items have been identified and destroyed. The scale of the problem is staggering, and the country needs all the help it can get.
Humanitarian demining is a critical first step in the restoration of de-occupied territories. It allows for the safe return of civilians to their homes and enables the reconstruction of critical infrastructure. In Ukraine, the issue of demining is not just a humanitarian one but also has economic implications. The agricultural sector, which is a vital component of the Ukrainian economy, is severely impacted by the presence of mines and unexploded ordnance. Land contaminated by mines cannot be used for agricultural activities, which in turn affects the country's food security.
Demining is a pressing issue that requires urgent attention. The establishment of a center for humanitarian demining and the collaboration with international partners will improve coordination and enable the mobilization of resources necessary to clear the contaminated areas. The successful resolution of the demining problem in Ukraine is crucial for the safe return of civilians to their homes, the restoration of critical infrastructure, and the development of the agricultural sector. The clock is ticking, and time is of the essence.
The 2023 sowing season in Ukraine faces significant challenges, including a lack of funds, logistical problems, the ongoing hostilities in the eastern regions, and a shortage of fertilizers. Despite these challenges, the government remains optimistic about the future, and farmers are doing their best to adapt to the changing conditions.