Ukraine. The main strategy is to reduce costs, productivity has been postponed for later

Due to difficult working conditions, lack of working capital and the difficulty of exporting, farmers transformed the strategy of “increasing productivity” into “reducing costs”. A return to the main factor—increasing productivity—can only be expected once the economy has recovered from the war.

Grain market analyst of UkrAgroConsult company Maryna Marynych told about this during the conference “Ukrainian exports – how to get access to the sea?”.

“Among the consequences of the war for the agricultural sector, I wanted to single out the shortage and high cost of means of production, especially mineral fertilizers. Their lack affects the volume of the harvest. And in the current season, it will be even more noticeable,” says Maryna Marynych.

According to her, the reduction of the area of ​​winter crops for the harvest of 2023 in Ukraine in general amounts to 37%. The largest decrease is observed in the east, less in the south, in the north winter crops will decrease by 16% compared to last year. At the same time, wheat will experience the greatest reduction.

The total areas under dry crops will decrease, and the extent of their reduction will depend on the further operation of the grain corridor. This year, almost all crops show zero or negative margins. The exception is sunflower, which is why agrarians can give priority to this crop when planning crop areas in 2023. But final decisions will be made by agricultural producers closer to spring, because planning has become possible only in the short term.