Niche crops may become more attractive to Ukrainian farmers due to higher margins

Published 2024년 10월 9일

Tridge summary

Analyst Andriy Bilenky discusses the dynamic of niche crops versus main monocultures in agriculture, noting that the former can serve as a buffer for farmers in terms of profitability. However, he also points out that the future of niche crops largely depends on their export potential. Crops with high export shares, such as millet and peas, are more likely to have growth prospects, while those with negligible export presence, like rye, oats, and buckwheat, may face limited growth. Bilenky stresses the importance of analyzing crop prices and costs to determine profitable cultivation for the next season, with weather conditions also playing a significant role in crop selection. Overall, he does not anticipate any significant changes in crop trends over the next five years.

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Original content

"Agroclimatic conditions create a situation where the marginality of some crops becomes competitive. For example, buckwheat is a niche product that provides a domestic market and is supported by domestic consumption. The general trend is that niche crops gradually recede into the background due to their lower competitiveness compared to the main monocultures," said analyst Andriy Bilenky. According to him, niche cultures act as a kind of compensator. When the marginality of the main crops falls, interest in niche crops grows, and vice versa, writes Kurkul.com. "This is a certain tool that farmers use to protect their margins," Andriy Bilenky noted. Read also: The summer heat deprived the farmers of Ukraine of a significant part of the harvest He is also sure that the greater the share of exports in the production of culture, the more prospects it has. If culture is mainly consumed in the domestic market, its prospects for growth are limited. Crops such as rye, oats and buckwheat ...

Source: Seeds