Ukraine has the potential to increase its annual agricultural exports from the current USD 24.2 billion to more than USD 100 billion by developing deep processing of agricultural products. Achieving this goal will require around USD 85 billion in investments over the next ten years, said President of the Ukrainian Agrarian Confederation Leonid Kozachenko, ProAgro Group reports.
“We have some of the best opportunities compared to other countries, as nearly 30% of the world’s chernozem soils are located in Ukraine. At the same time, it is striking that a country like the Netherlands, with 4.5 times less land, produces food and derivative products worth about USD 108 billion. They use less than 20% of their own raw materials and import the rest, yet rank among the world’s top exporters, while Ukraine remains only in the third decade despite its raw material base,” he said at a conference.
Kozachenko noted that capitalization losses in Ukraine’s agricultural sector caused by Russia’s war exceed USD 120 billion, while direct damages amount to USD 11.5 billion. Large areas of farmland remain mined, and the livestock sector, agricultural machinery, and logistics infrastructure have suffered significant losses.
According to the Ukrainian Agrarian Confederation, if the genetic potential of crops and livestock is realized, Ukraine could produce up to 150 million tons of grains and oilseeds, 25 million tons of milk, and up to 10 million tons of meat annually.
To unlock this potential, investments should primarily be directed toward the food and processing industries, livestock farming, irrigation, bioenergy, and logistics. Proposed incentives include tax and land benefits for processing plants, equipment subsidies, the establishment of a specialized mortgage bank, and the development of industrial parks.
Kozachenko emphasized that shifting from raw material exports to exports of value-added products should become a strategic priority for Ukraine’s agricultural development over the next decade.
Earlier reports noted that processing remains a more complex and less profitable segment compared to crop production, and its expansion requires access to affordable financing and the removal of bureaucratic barriers.
Source: Open4Business
