Main challenges of agricultural holding in Ukraine

post from 30 March 2023

Galyna Kovtok provides insights into the operations of Ukraine farming, the country's export dynamics, and the broader challenges faced by the agricultural sector. She touches upon the logistical costs, the shift in crop focus, and the significant migration of the younger generation seeking better opportunities abroad.

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Introduction: Galyna Kovtok, with 24 years of experience in Ukrainian farming and serving as the Chief Operating Officer for the past 15 years, introduces herself and the scale of operations at Ukraine farming.

Ukraine Farming at a Glance:

Operates over half a million hectares of land in Ukraine.
Produces more than 1.5 million tons of various crops annually.
Owns trucks, trains, and elevators capable of handling up to 7 million tons in a year.

Export Dynamics:

Despite challenges like the war, Ukraine managed to export a significant amount of agricultural products.
Major export routes include the Black Sea, and by train and truck through Poland, Romania, and Hungary.
The company began the year with stocks of around 800,000 metric tons of various crops.

Logistical Challenges:

The primary concern for many directors in Ukraine has shifted to logistics due to its significant cost implications.
The establishment of the grain corridor greatly benefited companies, allowing them to manage logistics more efficiently.
However, transportation costs have surged, with prices sometimes tripling for the same distances.

Crop Forecast:

The upcoming harvest is estimated to be 25-30% less due to various factors, including increased areas in occupied territories and a decrease in yield due to a lack of fertilizers.
While there’s a decrease in corn and wheat, there’s an increase in sunflower and soybean seeds, as they are more economically viable and require less volume for transportation.

Societal Challenge – Migration of Young Workforce:

A significant portion of Ukraine’s young population (both men and women) is migrating to other countries in search of better opportunities.
This migration poses a challenge for various sectors in Ukraine, including agriculture, as there’s a shortage of workforce.
The primary goal for many companies, including Ukraine farming, is survival and the hope of bringing back the migrated workforce.

Conclusion: The agricultural sector in Ukraine is navigating through a myriad of challenges, from logistical costs to workforce migration. While the situation is tough, there’s hope and optimism for a better future, with stakeholders continuously adapting to the changing dynamics.