Ukraine grain output could drop 12 mln tonnes in 2027 on reduced acreage – Kernel CEO
Kernel agricultural holding CEO Yevhen Osypov expects Ukraine's grain production to decline by 12 million tonnes next year in a stress scenario, due to a possible reduction in acreage by farmers if a solution to resume exports is not found within the next six months, an Interfax-Ukraine correspondent reports.
Kernel CEO Yevhen Osypov anticipates a significant decline in Ukraine's grain output to 12 million tonnes in 2027, if farmers reduce their acreage without a solution to resume exports within six months. Current forecasts are challenging, but Osypov hopes a resolution will be reached soon. In a worst-case scenario, reduced acreage could lead to a 12 million tonne decrease in grain production, as farmers may plant less due to the inability to export.
With seaports closed, Ukraine can only export approximately 20 million tonnes out of the required 50 million tonnes, or 40% of the necessary volume. To adapt, Kernel is focusing on processing and exporting processed products, shifting to higher-value products while retaining the ability to purchase and export processed agricultural products from Ukrainian farmers.
Despite the U.S. Department of Agriculture raising its estimate for Ukraine's total grain production to 65.09 million tonnes, Kernel emphasizes the need for new business models due to the current restrictions and logistics challenges.
Written by urgent.news from Interfax-Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
