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🔴"THE LAW AGAINST FARMERS": HOW NEW EXPORT DUTIES WILL HIT FARMERS IN ODESA REGION

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On 16 July, the Verkhovna Rada voted for scandalous amendments introducing 10 per cent duty on soybean and rapeseed exports. It would seem to be an ordinary fiscal step, which is often justified in developed countries.
However, in Ukraine, this is yet another round of anti-farm policy that has already provoked a sharp reaction from the agrarian community, especially in the south - in the agrarian Odesa region.

"This is not only a blow to business, it is a blow to faith, to the desire to stay on the land. This is yet another confirmation that small and medium-sized farmers in Ukraine are redundant.
The state does not see us as partners. There is no dialogue, no support, only restrictions, new barriers and complete indifference.
Agriculture - is not just a job. It's a life that goes on seven days a week, in any weather, even with sirens blaring. We support villages, feed the army, pay taxes, and create jobs.
Instead, we get silence and new blows.
The hardest thing is the feeling that no one needs your work. We are basically told: "Give up".
But we will stay.
Because the field is our frontline. And we will not surrender it" Alla Stoyanova says with pain.

📜 What happened? And why is it important

The Parliament adopted amendments to the draft law No. 13157which provides for 10% duties on rapeseed and soybean exports. At the same time, farmers who export their products themselves (through cooperatives or directly) are formally exempt from the duty.
But this is only a formality.
In fact, small and medium-sized agricultural producers do not export. They sell through a trader. Therefore, this is another "lure".

In reality, most small farmers do not have access to direct international markets: infrastructure, logistics, certification - all this is very difficult for most agricultural producers in Odesa region. Consequently, they are once again forced to sell their crops to traders at lower prices.

🔍 Adoption of the draft law: manipulation and non-transparency

The rules of procedure of the Verkhovna Rada were ignored: MPs were literally misled about the content of the votes.

This indicates the lobbying nature of the decision - not a systemic agricultural policy.

"Apparently, the Verkhovna Rada knew that the Ministry of Agrarian Policy would be liquidated the next day, and that is why they were in such a hurry to pass the bill - they understood that there would be no one to stand up for farmers," suggests Alla Stoyanova.

⚠️ Implications for the agricultural sector of Odesa region

Odesa region is one of the leading rapeseed growing regions. It is home to many small and medium-sized farms that do not have their own elevators, logistics or access to international markets.

Main risks:

  • There has already been a decline in purchase prices for small producers: traders have already passed on the non-existent duty to farmers.
  • The reduction in sown areas is inevitable, as it already happened in 2017-2019.
  • Strengthening the monopoly of processors who will be able to dictate terms.
  • Violation of European integration commitments - as export duties contradict the Association Agreement with the EU.

📊 Numbers that speak

According to APK-Inform, in 2024/25 MY Ukraine exported a total of 1.5 billion tonnes:

3.8 million tonnes of soybeans for $1.56 billion
3.2 million tonnes of rapeseed for $1.56 billion
Sunflower exports fell to 70 thsd tonnes, indicating active domestic processing (but on terms favourable to large businesses).
According to the All-Ukrainian Agrarian Council, the agricultural sector's losses from duties are up to UAH 17 billion.

🏭 What about recycling? Idea versus reality

The initiators of the changes appeal to the "success story" of sunflower oil. However, sunflower is a different story: it was backed by multibillion-dollar investments, long-term support for the industry, and government preferences.

The situation is different for rapeseed and soybeans processed in Ukraine. According to business representatives, the plants are mostly owned by a few large groups. And the duty is not an incentive for new construction, but a selective advantage for those who are already "in the business".

🧭 Where to next?

Once again, Ukraine is falling into the same trap - restricting exports for the sake of mythical "domestic processing development" without real infrastructure, investment and support for farmers.
In the long run, this will lead to a loss of trust and demotivation.

"Our region is arid and difficult, and we grow what we can. And the government is tightening the screws. For farmers in Odesa region, this means minus two crops in the crop rotation. And today the price of rapeseed is minus 10%. We are once again forced to survive rather than develop," Alla Stoyanova summarises.

And while Kyiv is jostling under the dome, farmers in the southeast are already thinking about one thing: whether to sow these crops next year at all.
The winter rapeseed sowing campaign in Bessarabia starts in 2 weeks.
The answer is obvious.

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