Barley prices in Ukraine continue to rise amid supply shortage and devaluation of the hryvnia

Ukrainian farmers are withholding the sale of agricultural products such as corn, wheat, and barley due to the devaluation of the hryvnia and high prices for rapeseed and sunflower. The dollar exchange rate against the hryvnia has increased by 0.5% since the start of the year, leading to a surge in feed barley prices. However, demand for malting barley remains low due to difficulties in selling malt on the global market. Global alcohol sales have also decreased due to younger generations preferring technology and a healthier lifestyle, with Ukrainian alcohol sales falling by 53% for overall alcohol, 58% for wine, and 34% for beer since the start of Russian aggression in 2022.

During the New Year holidays, the traditional decline in the supply and delivery of agricultural products in Ukraine has become even more noticeable this year. This is due to the fact that farmers have enough working capital from the sale of rapeseed and sunflower in the first half of the season at high prices. They are now refraining from sales against the backdrop of the devaluation of the hryvnia and the gradual increase in prices for corn, wheat and barley. The dollar exchange rate against the hryvnia continues to grow and has increased by 0.5% since the beginning of the year to 42.4 UAH/$, which, together with the increase in export prices, contributes to the rapid growth of prices for feed barley. Over the past two weeks, export demand prices for feed barley in Black Sea ports have increased by 200–400 UAH/t to 9300–9500 UAH/t or 192–195 $/t, and in Danube ports - to 200–201 $/t, supported by the increase in prices for feed corn to 205–206 $/t and feed wheat to 207–209 $/t. ...