Ukraine increasingly needs to step up rye exports

2020 turned out to be a very successful year for rye production in Ukraine. According to the State Statistics Committee, farmers harvested some 457 KMT from an area of 138 Th ha, i.e. yield hit a record 3.32 MT/ha. Rye yield rise indicates that Ukrainian farmers have begun paying more attention to variety choice and observation of agronomic recommendations.

At the same time, the pace of exports in the last two seasons leaves much to be desired: 6.4 KMT was shipped abroad in MY 2019/20 (14 times less than in the previous season), and rye exports in the first nine months of this season fell to 1.8 KMT (-72% y-o-y), UkrAgroConsult reports.

The shipments dropped mostly due to loss of the main destination market – the EU, which absorbed some 60-70% of Ukrainian exports in 2017-2019.

It is expected that by an almost 21% gain in winter rye acreage for 2021, and winter grains are in good condition according to the latest data.

To avoid problem of high ending stocks, the main work will have to be done by Ukrainian exporters or even by the recreated Ag Ministry. This includes making rye more attractive in the international market, restoring trade with the EU, or finding new destination markets.