Ukraine may leave about 20% of its farmland unplanted next spring if blocked exports prevent farmers from financing the next crop.
Russia’s ongoing blockade of Ukraine’s Black Sea ports has pushed grain exports close to a standstill, threatening next year’s planting season, Bloomberg reported.
Yevgen Osypov, chief executive officer of Ukraine’s largest grain producer and exporter Kernel, said the country has about 1 million metric tons of grain in storage and could leave roughly 20% of its land unplanted next spring if there is no solution for exports.
Restrictions on Black Sea ports have tightened over the past two months, with exports falling to less than 10% of earlier-year levels. Ukraine may run out of storage by early November if shipments remain blocked, according to the Agriculture Ministry.
The disruption has also pushed wheat prices to a two-year high and risks tighter food supplies and higher prices in developing countries that rely on Ukrainian grain. Kernel is diversifying into power generation and plans to build 1 gigawatt of renewable capacity in Ukraine by 2030.
