On the threshold of a new season and in view of the difficult current political situation, the UkrAgroConsult consultancy held a press conference on March 20, 2014 to elucidate events in Ukraine’s agricultural market. The leading market experts told about their harvest expectations, winter crop condition, and planting progress.  

The 2013/14 marketing year was a serious test for the Black Sea grain market. A price slump early in the new season reduced grain growing margin. Although prices went up later in the season, growers are facing unusually acute issues with funding spring field work in 2014, UkrAgroConsult leading grain market expert Elizaveta Malyshko told the press conference.

For the first time since 2008, Ukrainian farmers have to operate in the conditions of low commodity prices and meager bank financing. The problem is aggravated by the need to expand spring crop plantings in view of a shrunk seeded area of winter crops. Winter crops for 2014 were planted on an area of 7.82 Ml ha compared to 8.1 Ml ha in the previous season.

Spring barley and corn are expected to occupy the fields farmers failed to seed in the fall. Thanks to the early arrival of spring, barley planting progress hits a six-year high. Theoretically, corn planted area may also expand. In difficult financial conditions farmers have to optimize cereal and oilseed growing practices to cut production costs. As a result, we expect the total crop of grains and oilseeds to drop year-over-year in 2014.
 

UkrAgroConsult