Ukraine Farm Union Warns Oilseed Export Priority

Ukraine s largest farming union warns that giving export preference to oilseeds will leave grain farmers with excessive stocks and sharply lower incomes. The proposed policy could worsen logistics bottlenecks and depress local purchase prices further.

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Employees of a local farm load sunflower seeds into a truck near a storage near the village of Lozuvatka, Dnipropetrovsk region, Ukraine, January 23, 2024. REUTERS/Alina Smutko

Ukraine's largest farming union warned on Wednesday morning that giving export preference to oilseeds would leave grain producers facing excessive storage stocks and lower incomes. The proposed transport prioritization threatens to exacerbate logjam risks as seaports remain blocked amid the ongoing war with Russia. Grain shipments face severe headwinds as logistics costs consume a larger share of final product prices compared with higher-value oilseeds.

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