The Ukrainian Academy of Sciences’ Institute of Agrarian Economics released a figure during mid-harvest that serves as a benchmark for farmers: yields below 500 kg per hectare at a market price of 9,000 hryvnias (approximately 176 euros) per ton result in a loss for wheat production.
On July 28, during the harvest period, the Ukrainian National Scientific Center “Institute of Agrarian Economics” revealed a critical figure via the AgroPortal.ua publication. This number allows farmers to evaluate their situation without waiting for the season’s end: at 9,000 hryvnias per ton (around 176 euros/t at an exchange rate of 51.2 UAH/euro), the profitability threshold for winter wheat is approximately 5 tons per hectare, equating to 500 kg per hectare. The institute bases this calculation on an estimated cost of 45,000 hryvnias per hectare of wheat production this year, about 88 euros per decare. Dividing 88 by 0.176 results in 500, indicating that below this yield, income won’t cover costs.
The statement is prompted by the high diesel prices nearing 90 hryvnias per liter (about 1.76 euros/l) in Ukraine amid the harvest season. Fuel and lubricants represent 12–15 percent of production costs, second only to mineral fertilizers. Over 85 percent of diesel used in the agricultural sector is consumed in field activities, with one-third occurring during the harvest. As a result, price hikes quickly impact production costs. The assessment’s author, corresponding member Oleksandr Zakharchuk, emphasizes that all expenses have risen by about 15 percent annually, including fertilizers, seeds, preparations, electricity, logistics, and labor. As of July 28, with 30 percent of fields harvested, the average yield in Ukraine is 432 kg/hectare, below the profitability threshold, although expected to increase as more fertile areas are harvested.
A scientific institution has simplified the market dynamics into a single, actionable figure that farmers can compare against their combine’s data immediately.
Illustrative photo: pexels-anna-lupa-2161503734-38598699
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