Ukraine 2020 crop harvest drops 13% in 2020

Ukrainian farmers harvested a total of 65.4 mmt of
grains (13.1% lower yoy) from 15.3 mln ha in 2020, according to the Ministry of
Economy report on Dec. 15. The average crop yield declined 13.5% yoy to 4.3
t/ha. Farmers harvested 25.1 mmt of wheat (9.0% less yoy) with an average yield
of 3.8 t/ha (9.2% decline yoy) in 2020. Total corn harvest dropped 15.3% yoy to
29.8 mmt with an average yield of 5.3 t/ha (21.3% less yoy) in 2020.

Also, farmers harvested 13.1 mmt of sunflower seed
(10.4% less yoy) with an average yield of 2.0 t/ha (a 18.5% decline yoy). Soybean
output decreased 24.1% yoy to 2.8 mmt with an average yield of 2.2 t/ha (8.3%
lower yoy) in 2020. Rapeseed output decreased 16.6% yoy to 2.6 mmt with an
average yield 2.4 t/ha (5.5% lower yoy) in 2020.

Andriy Perederey: The 2020
harvest results are lower due to unfavorable weather conditions in this harvest
season. Also, the 2019 harvest season was a record high for the last 20 years,
so the significant 2020 yield drop is a result of a high comparison basis. The
agricultural sector won’t be a positive contributor to Ukraine’s GDP in 2020.
Also, the lower harvest results will have had weak support of the 1H21 trade
balance, but its influence will be partly offset by higher crop prices.