Posted on April, 18, 2024 at 09:41 am
Grain production in Ukraine has remained unprofitable since Russia invaded the country in February 2022, which will translate into decreased grain acreage in the 2024-25 marketing year, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
The FAS forecasts a 3% decrease in total grain (wheat, corn, barley and rye) planted area. For its two largest grain crops, wheat and corn, planted area is projected to decline by 5% and 8%, respectively, to 4.8 million and 3.6 million hectares in 2024-25, according to the FAS.
Also contributing to the decline in planted area for grains is “lower profitability compared to oilseeds,” the FAS said.
With lower yields also forecast, Ukraine grain production is expected to decrease by 6% from the previous year, the FAS said. Wheat production is projected at 21.1 million tonnes, down 2 million tonnes from 2023-24 output. A similar decline is expected in corn production, which is pegged at 26.6 million tonnes, down from 28.3 million.
Consequently, a dramatic 27% drop in Ukrainian wheat exports is anticipated by the FAS, at 12.8 million tonnes, its lowest level since 2014-15. Ukraine’s corn exports are forecast to decline by 9% year-on-year to 22.3 million tonnes, the lowest level since 2017-18.
Source: World Grain