Ukrainian farmers are actively conducting the sowing campaign, for the second time in the context of war. All signals on the international stage regarding the possibilities of expanding logistics and exports have a positive impact on the agricultural sector. However, there are internal factors, such as limited lending opportunities, that hinder agricultural production.

This was stated by Denys Marchuk, Deputy Chairman of the UAC:

"Russia is trying to disrupt the grain corridor, and the market needs a signal during the sowing season that the agricultural sector will be able to sell and export, because we are an export-oriented country that can grow three times more than domestic consumption. The market has already felt the EU's bans, but we quickly managed to negotiate and preserve the possibility of transit of agricultural products through neighboring European countries."

The problems of farmers in the second military sowing season are not only related to export opportunities, there are also negative internal factors, one of which is financing.

"The war is making its own adjustments: agricultural companies have reduced their financial capacity for the sowing campaign. This is due to the fact that a large part of agricultural land is temporarily occupied or mined. Farmers are unable to export at decent prices. Sowing is difficult today, and it is impossible to guarantee 100 percent application of fertilizers and plant protection products. It is very important to support the agricultural sector financially. Commodity producers are actively using the government's 5-7-9 loan program, but there is a problem with credit limits: UAH 90 million per legal entity is not enough today because everything has risen in price and many farmers used the limit last year. Credit limits need to be doubled to UAH 180 million, which will benefit everyone: agricultural enterprises will carry out the sowing season, the state will receive repaid loans with interest and foreign exchange earnings. This is an important area that the UAC is currently working on in dialogue with the state authorities," emphasized Denys Marchuk.

Monday, 15 May 2023

 

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