The shortfall in grain storage capacity in Ukraine could reach 11 mln tons
Ukrainian farmers face sharply higher harvesting costs from rising diesel prices and falling wheat prices, threatening profitability. Export disruptions and Russian attacks are worsening storage challenges, with Ukraine potentially lacking capacity for 11 million tonnes of grain. Farmers are turning to grain bags and modular storage solutions.
Ukrainian farmers in 2026 are facing a sharp increase in harvesting costs due to higher diesel prices and a simultaneous decline in wheat purchase prices. According to Ivan Slobodianyk, executive director of the All-Ukrainian Association of Communities, farmers’ purchasing power has fallen almost fourfold, putting the profitability of this year’s harvesting campaign into question.
The situation is being exacerbated by problems with grain exports and the continued threat of Russian attacks on elevators and grain storage facilities, particularly in frontline regions. Producers have to simultaneously secure funding for field operations, find opportunities to sell their crops at acceptable prices and ensure safe storage for the harvest already collected.
One of the biggest challenges could be a shortage of grain storage capacity. According to Slobodianyk, Ukraine could lack facilities for around 11 mln tons of grains and pulses. With export opportunities limited, significant volumes of the new crop could remain inside the country, further increasing demand for storage.
As an alternative to conventional elevators, farmers are considering storing grain directly on farms using grain bags, modular storage facilities and floor storage. Agricultural associations have already appealed to the relevant ministry and international donors for assistance in obtaining the equipment and resources needed to quickly deploy additional storage capacity.
The government has also proposed using available facilities of the state food and grain corporation. However, concentrating large volumes of grain at individual storage sites creates additional security risks due to possible Russian attacks. Even if the storage problem is addressed, the key challenge for farmers will remain selling their crops at prices sufficient to finance the next production season.
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Source : Ukr Agro Consult
