Agriculture in the Chernivtsi Region Under Market Pressure: Nearly 285,000 Tonnes of Grain Harvested, but Sales Are Slowing

The Grain Harvest Is Nearing Completion, but Farmers in the Chernivtsi Region Face Marketing Challenges

In the Chernivtsi region, the early grain harvest campaign is nearing completion, but farmers are facing a new challenge: falling prices and difficulties in selling their produce. According to a report by the publication “Molodyi Bukovynets,” farmers must decide whether to sell their grain at prices that do not cover production costs or store it, hoping for a potential improvement in market conditions.

The situation has deteriorated particularly this summer amid Russian attacks on ports and grain-export infrastructure. The reduction in logistics capacity has prompted some traders to limit purchases or renegotiate contracts, while prices offered at elevators in the region have fallen below production costs.

Ports Remain the Main Link in Agricultural Exports

Farmer Oleksandr Voievidko believes that seaports remain essential to the functioning of Ukraine’s agricultural sector. According to him, approximately 90% of Ukraine’s trade flows, including grain exports, have depended on port infrastructure.

Some exports are being redirected via rail and road transport through Romania, Poland, Slovakia and Hungary. However, these alternatives cannot absorb the volumes previously transported by sea. Even a significant increase in land-based transport would cover only a limited share of Ukraine’s overall needs.

Farmers Prefer Storage to Selling at a Loss

Under the current market conditions, some farmers are choosing not to sell their harvest. Oleksandr Voievidko says that existing offers are well below production costs, including for the high-quality wheat harvested this year.

His farm has vertical silos and suitable facilities for long-term grain storage. Under these circumstances, farmers consider it more advantageous to store their produce and wait for a potential market recovery rather than accept immediate losses.

Grain Prices Have Fallen Below Production Costs

A similar situation is reported by farmer Dmytro Slivka from Verenchanka. According to him, the problems became more pronounced in July, when purchase prices fell below production costs.

At present, production costs are estimated at approximately UAH 7,000–7,500 per tonne, while local elevators are offering around UAH 6,500–7,000. Previously, grain could be sold for approximately UAH 9,000 per tonne.

Purchase prices are also affected by logistics costs, including fuel and transportation to export points. As port prices no longer compensate for these expenses, farmers’ profit margins have narrowed significantly.

Contracts with Traders Come Under Pressure

Farmers are reporting not only a decline in the number of buyers, but also difficulties in enforcing previously signed contracts. According to Dmytro Slivka, some farms had contracts based on specified volumes and pricing formulas, but certain major traders are now refusing to honor them under the original terms.

There are still buyers able to collect grain and transport it to the railway network for export, but their capacity is limited. Under these circumstances, farmers with sufficient financial resources are choosing to store their production, while others are forced to sell only the quantities necessary to cover current expenses.

Romania and Constanta Offer Alternative Export Routes

Romania, particularly the Port of Constanta, remains one of the main alternatives for Ukrainian grain exports. Part of the cargo can also be transported along the Danube through river ports.

For farmers in the Chernivtsi region, however, these routes involve high logistics costs. Transporting grain to Reni and subsequently to export ports is considered more suitable for producers in southern Ukraine.

At the same time, farmers emphasize that neither road nor rail transport can fully replace the capacity of the seaports, maintaining pressure on the domestic grain market.

Attacks on Port Infrastructure Affect the Agricultural Market

Pressure on agricultural logistics has increased following attacks on Ukrainian port infrastructure. In July, port infrastructure and storage facilities belonging to agricultural company “Kernel” in Chornomorsk were damaged, while terminal operations were suspended. Significant quantities of wheat and sunflower oil were destroyed.

According to the Ukrainian Agrarian Confederation, during the first two weeks of July, the ports of Odesa and Chornomorsk were attacked 23 times. In mid-August, the Danube port of Izmail, one of the important points for grain exports, was also targeted.

Farmers Begin Preparations for the 2027 Harvest

While the grain harvest is nearing completion, farmers in the Chernivtsi region have already begun work for the new agricultural season. The sowing of winter rapeseed, intended for the 2027 harvest, is already underway.

By August 13, winter rapeseed had been sown on nearly 4,000 hectares out of a planned area of 11,600 hectares.

A total of approximately 35,300 hectares is planned for autumn crops, including 28,500 hectares of winter wheat, 6,600 hectares of winter barley and 200 hectares of winter rye. Farmers’ decisions regarding the structure of future crops could be influenced by developments in exports and the situation at Ukrainian ports.

Nearly 285,000 Tonnes of Grain Harvested in the Region

According to the Agro-Industrial Development Department of the Chernivtsi Regional State Administration, by August 13 approximately 98% of the area planted with early grains and legumes had been harvested.

Farmers had harvested 284,100 tonnes of grain from 52,900 hectares, with an average yield of 53.7 quintals per hectare.

The largest harvest was recorded for wheat, with 169,300 tonnes from 29,400 hectares. The barley harvest reached 110,300 tonnes from 22,300 hectares. In addition, 1,000 tonnes of rye, 3,000 tonnes of oats and 500 tonnes of peas were harvested.

At the same time, rapeseed harvesting is also nearing completion: it has already been harvested from 11,500 hectares, yielding approximately 38,300 tonnes.

Logistics and Prices Remain the Main Challenges for the New Season

The harvest results demonstrate the significant agricultural potential of the Chernivtsi region, but the ability to market the produce remains the main challenge for farmers. Lower prices, high logistics costs and limited access to export infrastructure are putting pressure on farm profitability.

Developments at Ukrainian ports and the ability to expand alternative trade routes, including through Romania, will be decisive for grain prices and for farmers’ production decisions in the next agricultural season.