Rapid export: how Ukraine fed the world

Submitted by bashun on Fri, 12/29/2017 - 14:52

The export of domestic agro products this year is on record. In January-November, its volume grew by almost 23% to $ 14.7 billion.

The highest growth rates of exports were shown by such products as sugar, poultry meat, butter, cereals and beef. More agrarian products from Ukraine were bought in India, Egypt, the Netherlands, Spain and China. Writes agronews.ua

However, the current sales volumes are far from the limit. The growth potential of the agricultural sector of Ukraine is still quite significant. According to Nataliia Shpyhotska, a senior analyst at investment company Dragon Capital, if we estimate the whole sector, the total gross value added per hectare, and then the growth potential is about 30-60% both by improving efficiency in crop production and by increasing sectors with a greater share of value added.

However, in order to increase sales of finished Ukrainian agro products, rather than raw materials abroad. The state needs to pursue an appropriate policy. The first signal from the state is the long-term rules of the game and their compliance. Then the investments will start to be attracted by private companies, as well as go into the industry through state support.

Taras Vysotskyi, general director of the Ukrainian Agribusiness Club, calls an equally important issue of assistance to Ukrainian producers from the point of view of entering foreign markets. Because not everyone has the necessary experience.

Despite the fact that the Ukrainian agrarian sector grows annually, it still receives a certain added value. But it is very difficult to determine the maximum efficiency point. "We know for sure that we have fertilizer investments, the use of machinery is 2-3 times less than in the EU," says Marian Zablotskyi, deputy chairman of the Ukrainian Agrarian Association.

USA, EU, Argentina and Brazil take certain measures in order to keep raw materials inside the country and export already finished products. Ukraine is also moving to this.

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