In 2023, the losses of the Ukrainian agricultural sector from the cultivation of grains and oilseeds are forecasted to reduce. But the production of three of the five main crops (wheat, barley and corn) will remain unprofitable. This is evidenced by the data of the study “UKRAINE: Impact of war on the profitability of agricultural production”, conducted by the Ministry of Agricultural Policy of Ukraine with the support of the Global Facility for Disaster Reduction and Recovery (GFDRR).
The study indicates, “We anticipate profit from the cultivation of soybeans, even though it currently occupies only 11% of the total cultivated area. Additionally, there are predictions of a modest profit from the production of sunflower seeds.”
At the same time, although in 2023 there is a recovery of profitability for some crops (because in 2022 the cultivation of all types of grains and oilseed was unprofitable), it should not be forgotten that the 2021 season was very successful for producers of grains and oilseeds in Ukraine.
“High yield and strong prices for agriproducts, as well as low prices for material and technical means, ensured strong profits (at least for those who made sales before February 24, 2022). Therefore, the success of 2021 created resources for sustainability in 2022, while at the beginning of 2023, the safety margin of the agricultural sector was much smaller,” the researchers noted.
