Ukraine may face the lowest grain harvest ever this year
This year Ukraine farmers may have to reduce the total sowing area of grain by about 20-25% due to the lack of money, which means that this year’s harvest could be the lowest in recent decades, stated market participants.
"Currently the deficit of funds for conducting the sowing campaign amounted to 20% of the required funding. Credit conditions have deteriorated significantly due to the problems of the country's economy," stated CEO of the Ukrainian Agrarian Confederation Sergey Stoyanov. Earlier, authorities estimated that the total cost of sowing campaign in Ukraine in 2015 amounted to UAH 11 billion (US$ 478 million).
A fall in corn and wheat export may bring problems to the domestic feed industry
Experts say that this situation may result in the fall of corn and wheat export, and bring problems to the domestic feed industry, which already feel the pressure of the devaluation of the country's currency. Representatives of the business say that the most serious challenges are faced by small and medium-sized business.
"The majority of small and medium-sized agricultural companies now cannot obtain financing from the banks. The rates on existing loans in the country for future harvest is around 30%, such loans means companies will make losses" added the vice-president of the Association of Farmers and Private Landowners Viktor Goncharenko.
To comment, login here
Or register to be able to comment.