What threats are facing the Ukrainian agricultural market at the beginning of the year?

Minister of Agricultural Policy Vitaly Koval said that the USAID suspension would negatively affect the Ukrainian agricultural sector, as many producers were waiting for the supply of equipment that has already been financed. The government is seeking ways to resolve this issue by securing alternative financing.

This situation was caused by US President Donald Trump’s decision to close USAID, laying off almost 100 employees, including at the agency’s main office in Washington.

Moreover, Agro Giant Nibulon warned of a possible stoppage of grain transshipment through the Izmail terminal due to the loss of the Danube route’s competitiveness.

Increased railway tariffs for freight transportation also threaten Ukrainian farmers.  However, state railroad company Ukrzaliznytsia is assuring customers that the indexation of tariffs will not have a critical impact on the agricultural sector. The cost of railway transportation in January last year was $21 per ton, while this year, thanks to cheaper rates for grain wagons, it has decreased to $13-14. Therefore, the announced indexation will increase the cost by only $4 to about $18 per ton.