What happened? Agricultural producers spend more on transportation of goods than they receive income from their sale.
Source. Yuriy Skichko, the participant of the round table “Agricultural sector + railway” and co-founder of the AgroVista agricultural holding.
Details. He noted that before the outbreak of a full-scale war, the cost of transporting cargo from the central part of Ukraine to deep-water ports or the western border had been $20/tonne. Instead, now the price has risen to $90-100/tonne.
Bohdan Vitvytsky, director of Agrofirma Kornatskykh LLC, added that small and medium businesses that cultivate up to 5000 hectares and specialise in growing grain crops suffer the most. Such agribusinesses do not have the financial resources to cover the losses.
“Already now, when drawing up the budget and the technological map for the next year, we see that the entire grain group is non-profit. For those enterprises that mainly sell corn, barley, and wheat, it will be a disaster,” explained Mr. Vitvytsky.