The Ukrainian buckwheat market may face the risk of import substitution — Rodion Rybchynskyi

The Director of the Union of Flour Millers of Ukraine, Rodion Rybchynskyi, explained to Telegraf the mechanisms behind buckwheat price formation, the logic of farmers’ decisions, and the dangers of artificial market hype, which could hit consumers’ wallets harder than a poor harvest.

According to the head of the Union, the current price tags in stores are the result of complex calculations. With the purchase price of raw materials at around UAH 30–32 thousand per ton, the wholesale price of finished buckwheat groats (hulled buckwheat) reaches about UAH 60 thousand per ton. Taking into account retail chains’ markups (10–20%), the final price on store shelves is formed.

 “We will not be able to continuously increase the purchase price, because imported groats will become cheaper than domestic ones, and our enterprises will have to stop production. Farmers’ expectations of further price increases are counterproductive,” emphasized Rodion Rybchynskyi

He also drew attention to the reasons behind the reduction of cultivation areas for buckwheat. According to Rybchynskyi, it is more profitable for farmers to sow corn with a yield of 80 centners per hectare for export than to harvest 15–20 centners per hectare of buckwheat for the domestic market.

“Consumer behavior and the risk of panic can lead to an artificial shortage. When people buy a two-month supply within two weeks, it only overheats the market. Moreover, groats stored at home often spoil due to pests, which results in wasted money,” the head of the Union stressed.

In conclusion, he added that the high prices of the current season may encourage farmers to increase sowing areas next year. At the same time, the availability of alternatives on the market — such as oat groats, corn groats, millet, and amaranth — can help meet consumer demand in this product category.