The Cabinet of Ministers of Ukraine has introduced a new state support instrument for farmers – grants for the construction of vegetable and fruit storage facilities. The relevant resolution was approved on January 21, ProAgro Group reports.

The program provides compensation of up to 30% of construction costs, capped at UAH 20 million, subject to co-financing by the beneficiary. State support will apply to projects involving the construction of new storage facilities with a capacity of at least 3,000 tonnes.

Preferential terms will be available for enterprises operating in frontline regions: the state may cover up to 50% of construction costs. Such support will be granted to agricultural producers registered and operating in areas of active or potential hostilities, or those owning or using land plots of which a significant share is located in temporarily occupied territories.

A mandatory condition for participation is the creation of new jobs. Storage facilities with capacities of 3,000–6,000 tonnes must employ at least 12 permanent staff, while facilities exceeding 6,000 tonnes must create no fewer than 16 jobs. Project implementation timelines range from 6 to 18 months from the date the grant funds are received.

The government expects the grants to stimulate the development of modern storage infrastructure, reduce post-harvest losses, smooth seasonal price fluctuations, and strengthen regional processing capacity.

Earlier reports noted that Ukraine’s vegetable sector is directly dependent on the availability of modern storage facilities. In the absence of professional storage, farmers are forced to sell produce immediately after harvest, leading to price collapses early in the season and supply shortages later on.