Ukraine’s Sown Area May Shrink by 20% Due to Port Blockade

This opinion was expressed by Kernel CEO Yevhen Osypov in a comment to Bloomberg.

«The main question is: what are we going to do in the spring of the next sowing season?” he said. “If there is no solution for exports, I believe Ukraine will reduce production and will not sow approximately 20% of its area. This means that 12 million tonnes of food grain will not be produced.»

It is noted that the escalation of hostilities between Ukraine and russia in the Black Sea has contributed to wheat prices rising to a two-year high.

Osypov said that the shutdown of Black Sea ports had caused exports to fall to less than 10% of the levels recorded at the beginning of the year. As a result, this year’s harvest will have to be stored in polyethylene grain bags.

According to the Ministry of Agrarian Policy and Food, Ukraine could exhaust its grain storage capacity by early November if exports remain suspended.