Ukraine may triple seed imports – forecast

Ukraine may triple seed imports in monetary terms and gradually squeeze domestic seed producers from the market if there is no state support.

Read alsoUkraine plans to boost seed exports to EU – trade envoyThat is according to a statement by the press service of the National Scientific Center "Institute of Agrarian Economics," referring to Doctor of Economics Oleksandr Zakharchuk on March 23.

In 2020, Ukraine imported seeds of grain and oil crops worth over US$400 million, which was many times more than in 2005, when only 12,000 tonnes of corn (worth US$26 million) and about 3,000 tonnes of sunflower seeds (US$19 million) were purchased abroad.

To date, the provision of domestic farmers with seeds of Ukrainian selection continues to decline, to 25-30% of corn, 10-15% of sunflower, 20% of rapeseed, and 5-10% of sugar beet.

In addition, over the past fifteen years, the share of domestic wheat seeds in the market has decreased from 85% to 66%.

"While maintaining the existing trends in the domestic seed industry, as well as against the background of declining state support for domestic selection, imports of foreign seeds to Ukraine may triple in value, up to US$1.5 billion. Eventually, this may lead to a complete displacement of domestic varietal resources from the market of seeds and planting material, which poses a potential threat to Ukraine's food security export opportunities," he summed up.

Seeds quality

About 30% of seeds in Ukraine fail to meet the quality standards, according the State Service of Ukraine on Food Safety and Consumer Protection.

Seeds exports: Background

• Exports of seeds of grain and oil crops from Ukraine in January-September 2020 grew to US$16.5 million, which was 30% up against US$12.7 million reported year-over-year (y-o-y), according to the National Scientific Center "Institute of Agrarian Economics."
• Ukraine in the nine months of 2020 cut its seed imports by 25% y-o-y over the COVID-19 pandemic.