April 18, 2022

French industry group says Ukraine's declining grain production could last for years

French seed makers association UFS said Russia's invasion into Ukraine has caused reduced production of crop seeds in Ukraine, which could have a long-term impact on the country's grain output for several years, Reuters reported.

Claude Tabel, president of UFS said the expected decline would include farms that cultivate crops to give seeds for the next year, perhaps leaving Ukrainian farmers short of seeds for planting in 2023.

Ukraine, one of the world's top grain exporters, is largely projected to see its crop decline this year because of Russia's invasion into the country.

Tabel said there may be a loss of almost half of Ukraine's seed output, as production plans for this year have already been determined in other nations like France, a major supplier to Ukraine.

Other organisations have warned that the conflict will have a long-term impact on Ukrainian grain supplies, citing the destruction of infrastructure and the halting of trade in critical goods such as gasoline and fertiliser.

According to UFS, Ukrainian farmers had received around 60% of their maize seeds and 90% of their sunflower seeds by the end of March 2022, based on a poll of its members, many of whom are based in Ukraine.

Tabel said France, the European Union's largest grain producer, supplies roughly EUR 100 million (~US$108 million; EUR 1 = US$1.08) worth of crop seeds to Ukraine each year, accounting for nearly a third of the country's seed supply.

Didier Nury, vice president of the UFS, said France's ability to sell more spring seed to Ukraine next year has been hampered by some French farmers preferring to convert to regular crop production due to high market prices.

-      Reuters