Opportunities and prospects of rapid development of agribusiness of Ukraine
“Ukraine is one of the largest agricultural producers in the world, but it must become agricultural superpower” – said US Ambassador in Ukraine Jeffrey Payette.
Current state of Ukrainian agribusiness
Currently agribusiness is a leading industry and it’s developing even in the difficult economic and political environment. Ministry of Agrarian Policy and Food of Ukraine announced the effort to make Ukraine one of the leaders on the global agricultural market.
- Agribusiness uses 90-95% of agricultural land
- 50% of water
- employes 30% of the labor force
- contains 25-30% of fixed assets
- uses about 10-15% of national investment.
- Its share in the export potential of the country is about 30%.
- The production potential covers 41.7 million hectares of agricultural land, of which 32.4 million hectares is arable land.
By amount of production and its share in GDP of Ukraine agribusiness takes the third place after metallurgy and energy industries, nevertheless, by the number of people it employed and its social significance agribusiness takes a leading position.
The share of agricultural products in Ukraine’s foreign trade reaches up to 28%. Due to such high rate agriculture has become a major exporter of the country, way ahead of the income from the metallurgy export.
The share of agriculture in GDP of Ukraine is 10%. It employes every fifth Ukrainian (about 9 million people).
Top 5 most profitable agricultural enterprises in Ukraine are: “Cargill” (producer and exporter of sunflower oil), “Nibulon” (exporter of grains), “Rise” (exporter of grains), The State Food and Grain Corporation of Ukraine (exporter of grains) and “Creative” (producer and exporter of sunflower oil).
It is not only a driving force of the economy of Ukraine, consistently providing 15-20% of GDP per year, despite the crisis situation of recent years, and generating foreign currency earnings from the export of agricultural products, but it also provides Ukrainian population with high quality products of own production.
Positions of Ukraine on the global market
Ukraine produces 10.5 mln tonnes of sunflower, which is almost a third of all seeds produced in the world – 27% of global production. Ukraine is also the world leader in export of sunflower oil – 3.3 million tons per year.
Other positions of Ukraine on the global food market are: 4th place for the volume of corn exports (16.7 million tons). 5th place for the volume of barley export (2.3 million tons) and 7th place by volume of barley production (9.1 million tons).
Ukraine is the fourth in the world by volume of corn production (22.8 million tonnes / 2.3%) and grain exports (7.8 million tonnes). By the volume of wheat production “breadbasket of Europe” takes the 8th place (22.3 million tonnes or 2.5% of the world market).
Excellent quality of Ukrainian land
Such high achievements of agriculture the country owes to an unusually favorable soil. Most countries do not possess even a tenth part of what Ukraine has. The total area of Ukrainian black earth is equal to the area of the UK. Especially fertile is the southern and central parts of Ukraine, where about 50% of the territory is “pure” black earth.
Sadko Consulting considers such rapid development of agriculture as a signal to inflows of investments in agriculture and development of integration processes and establishing of new foreign relations of Ukraine with the global business community.
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