How the agricultural sector of Ukraine survives in the conditions of the second year of full-scale war

Ukrainian agrarians received a difficult challenge - to restore agriculture in the conditions of war. However, behind better indicators than in 2022, large financial losses are actually hidden due to export restrictions and low grain prices in Ukraine. The production of most agricultural crops is unprofitable, therefore, in the absence of changes next year, the industry will not achieve positive dynamics.

So far, there is no question of achieving pre-war indicators, but compared to 2022, the industry shows positive dynamics:

• The production of grain crops increased by 10% to 60.8 million tons, which is 31% lower than in 2021. Favorable weather made it possible to obtain good yields, even despite the reduction in the use of fertilizers.
• The production of oilseeds grew by 18% to 20.7 million tons, which is 10% lower than in 2021. This was facilitated by good weather and a change in the structure of sowing areas. Higher prices, own processing facilities, lower logistics costs during export make oil crops more profitable to grow.
• The production of sugar beets increased by 29% to 11.7 million tons, which exceeds the pre-war volume, but only because this crop was not previously grown in the currently occupied territories.
• Production of all types of meat increased by 3% to 3.1 million tons, which is 9% lower than in 2021. Poultry production grew the most.
• Milk production fell by 2% to 7.5 million tons.
• The production of chicken eggs decreased by 5% to 11 billion pieces.

The work of the "grain corridor" made it possible to export the remaining products that had remained in the ports since the beginning of the war. The export of goods in 2023 increased compared to 2022:

• of grain - by 11% to 43 million tons, which is 15% lower than in 2021,
• of vegetable oils - by 30% to 6.1 million tons, which is 10% higher than in 2021.

At the same time, the export of oil crops fell by 6% to 7.4 million tons, which was 95% higher than in 2021, because against the background of a reduction in domestic processing, the export of sunflower grew sharply in 2022, and already at the end of 2023 it decreased to minimum values.