Ukraine calls on the EU to jointly create a support mechanism for farmers to prevent global food collapse

Ukraine’s agricultural sector faces a triple blow: export blockade, storage capacity deficit, and liquidity crisis. Constant shelling and the closure of the three deep‑water ports of Greater Odesa which normally handle more than 90% have endangered the shipment of harvests and the sowing campaign for 2027, threatening global food security.

Minister of Agrarian Policy and Food Taras Vysotskyi and Deputy Minister Denys Bashlyk discussed ways to overcome this critical situation during a meeting with diplomatic representatives of EU countries, Norway, the World Bank, and FAO.

According to the Ministry, more than half of the planned export harvest may remain in Ukraine. In the 2026/27 marketing year, Ukraine is expected to export about 64.4 million tonnes of agricultural products, averaging 5.4 million tonnes per month. But in August, exports will amount to only about 1.6 million tonnes. Alternative routes will gradually recover, but their maximum capacity may reach only 2.9 million tonnes per month. As a result, total exports could fall to around 29.6 million tonnes. By November, the storage deficit may reach 11 million tonnes, with unsold stocks blocking more than €10.8 billion.

“Without the ability to sell harvested grain, farmers lose the liquidity needed to cover operating costs — wages, land rent, fuel, and fertilizers. This threatens the 2027 sowing campaign, especially for small and medium enterprises, and directly endangers global food security. Ukraine remains one of the key suppliers of grain and oilseeds to North Africa, the Middle East, and Asia. A halt in production and exports from Ukraine will inevitably cause food shortages and price spikes on world markets,” emphasized Taras Vysotskyi.

To avert collapse and avoid chaotic redirection of grain flows to the EU internal market, Ukraine has asked the EU to provide a EUR 220 million grant. This would not go directly to farmers but would be used to compensate interest rates and partially cover banking risks within concessional lending, particularly through expansion of the Affordable Loans at 5‑7‑9% program.

“Because of the blockade of seaports, thousands of Ukrainian farmers cannot sell their harvests or finance the next production cycle. We stress clearly: Ukraine does not seek to redirect these volumes to the EU market. We ask for targeted liquidity support. The grant should serve as financial leverage to compensate interest and help attract EUR 4 billion in bank loans to the agricultural sector (at rates not exceeding 10% per annum). This will allow farmers to avoid selling harvests for nothing and guarantee the 2027 sowing campaign,” said Taras Vysotskyi.

Thus, each euro of EU grant aid would enable more than EUR 18 in concessional bank loans.

Diplomatic missions and international organizations noted the Government’s swift action, including temporary adjustments to minimum export price coefficients to offset high logistics costs.

Participants agreed to urgently work on launching the proposed mechanism through the Ukraine Facility and involving EU guarantee institutions in the coming weeks — before the autumn peak in storage capacity demand.