April 20, 2022

Ukraine's grains storage capacity insufficient even for reduced 2022 harvest

The United Nations' World Food Programme said Ukraine's grains storage capacity is insufficient even for its reduced harvest this year, as Russia's invasion into Ukraine has meant Ukraine finds it difficult to export existing grain reserves, Reuters reported.

Jakob Kern, the World Food Programme's emergency coordinator in Ukraine, said about 20% of planted areas in Ukraine will be not be harvested in July this year, with the spring planting area around a third lower than normal.

Ukraine ranks fifth in the world in wheat exports and third in maize, barley, and sunflower seeds exports. Wheat output was estimated to be at 40 million tonnes last year, with the other three commodities accounting for another 50 million tonnes.

Kern said that selling current grain inventories will be a huge task this year for Ukraine to provide storage room for the 2022 crop and earn cash to buy seeds and fertilisers for the following planting season.

According to Kern, Ukraine used to export practically all of its grain and oilseeds – up to 6 million tonnes per month – via seaports that are now closed due to Russia's invasion.

He said the minister informed them that the primary issue is a shortage of storage capacity to bring in the grain crop in 2022. He estimates that 15 million tonnes of grains will be unable to fit into silos across the country.

Kern said if Ukraine is unable to ship its current grain stocks, farmers cannot afford input costs or plant crops for 2023.

Food prices worldwide have soared due to lack of Ukrainian grain on world markets. Kern said the World Food Programme is currently spending an additional US$70 million monthly to purchase the same amount of food compared to 2021.

-      Reuters