Ukraine’s Cabinet of Ministers is preparing an affordable financing program for agricultural producers backed by harvested grain, aimed at helping farms conduct the autumn sowing campaign without being forced to sell their produce at depressed prices, the Agrarian Policy and Food Ministry’s press service said.
"We need to urgently develop and launch an affordable financing program for agricultural producers – essentially to carry out the sowing campaign. They will be able to raise funds against their existing grain stocks, get through the crisis period and avoid selling grain at prices well below international market value," the ministry’s press service quoted Minister Taras Vysotsky as saying.
The program is being developed jointly by the Agrarian Policy and Food Ministry, the Economy Ministry and the Finance Ministry under a government directive, following consultations with representatives of the agricultural sector and banks, he said.
Vysotsky explained that the halt in exports through the ports of Greater Odesa has caused grain supply on the domestic market to significantly exceed demand, driving down purchase prices. The agriculture ministry estimates the sector has a buffer of a few months, but storage capacity for the harvest could become insufficient as early as November. Pressure on producers will intensify significantly if sea exports have not resumed by then, he said.
The minister noted that the ports of Greater Odesa handle about 90% of Ukraine’s exports of grain, oilseeds and their processed products, making the situation critical for the agricultural sector, especially during the harvest period. Ukraine continues to ship products by rail, road and through the Danube ports, but the combined capacity of these routes covers less than half of the required volumes.
"Without the resumption of sea exports, Ukraine could be left with more than 27 million tonnes of unshipped agricultural products," the ministry said.
Vysotsky also noted that once the maritime corridor resumes operation, Ukraine will still need time to ship out accumulated stocks before the start of the new marketing year in the summer of 2027.
