Grains will remain unprofitable in 2024 season, oilseeds profitability will increase
In 2024, the profitability of oilseeds will be higher than previously forecasted, but grain production will continue to be unprofitable.
This is stated in the fourth issue of the study “UKRAINE: The Impact of the War on Agricultural Profitability,” the press service of the Ministry of Agrarian Policy reports.
Thus, the profitability of crop production is expected to be higher compared to the previous forecast. The profitability of sunflower is expected to reach $45/t (-$4/t in 2023), soybean – $83/t ($69/t in 2023), and rapeseed – $78/t ($5/t in 2023). Grain production, unfortunately, will remain unprofitable.
“This year’s crop production results will be most affected by such factors as reduced fertilizer application rates and, as a result, a slight decrease in yields. Also, a reduction in the cost of export logistics, a reduction in the price gap between the price at elevators and in Ukrainian ports due to the establishment of export shipments, which will contribute to a more active recovery of domestic purchase prices,” the agency explained.
Analysts say that the preliminary prices for sunflowers of the new crop are up to 20,000/ton.
