Ukrainian farmers worried about export options

Victor Tsvyk harvested 170,000 bushels of wheat this month. But after Russia exited a wartime deal allowing Ukraine to ship grain to other parts of the world, he has no idea where his bounty will go or how his farm will survive.

This season, the Ukrainian wheat and corn crop is expected to be 40 percent smaller than the historical average due to a drop in planted acres. While the crop may be smaller, farmers are more concerned about market access.

(Ukrainian) Oleksandr Sivogorlo, agronomist: (translator voice:) "The problem is, first of all, that for us, for the world community, what is grown in Ukraine can be available in those countries that need the grain. We cannot sell our products, as the port infrastructure is partially destroyed and blocked."

Last month, Russia pulled out of the deal brokered by the U.N. and Turkey that provided protection for ships carrying Ukrainian grain through the Black Sea. Concern over the safety of sailors, ships and cargo has forced more grain onto rail cars for transport to other countries. Along with the reductions in shipping capacity are increasing worries about the economic impact of higher shipping costs.

Recent attacks on Ukrainian ports have caused tremors in global grain markets, but the coming harvest in the northern hemisphere has put downward pressure on prices.

(Ukrainian) Oleksandr Sivogorlo, agronomist: (translator voice:) "What Ukraine produces, it consumes only 15-20% internally. 80% of it needs to be exported, but we do not have this opportunity today."

Before the Russian invasion, 80 percent of Ukrainian wheat was exported, primarily to Egypt, India, China and the Middle East. 

The spring wheat harvest is complete and planting of winter wheat has already started. As the next crop goes into the ground, current farmers continue to worry the next crop may go no further than the local storage facility. 

(Ukrainian) Viktor Tsvyk, Ukrainian farmer: (translator voice:) "What I could feel in this situation? It is a great sorrow for everyone. It is hard for me to talk about this. But we need to experience it."

For Market to Market, I’m Peter Tubbs.