Agricultural sector

An Expert's View about Agriculture and Animal Husbandry in Ukraine

Posted on: 26 May 2012

Agriculture accounts for over 8% of GDP and 5.5% of employment in Ukraine. The food industry contribution to GDP is about 9% and about 4% of total employment in Ukraine.

Agricultural sector in Ukraine Ukraine's agriculture sector provides a lot of opportunities in terms of sharing experience, expertise and new technologies in crop production and stock breeding, food safety standards, crop protection and storage. Market overview Agriculture accounts for over 8% of GDP and 5.5% of employment in Ukraine. The food industry contribution to GDP is about 9% and about 4% of total employment in Ukraine. If the industries up- and downstream from agriculture (input supply and food processing) are also considered, the contribution to the Ukrainian economy increases roughly to 22% of GDP and 10% of total employment. Ukraine is endowed with considerable agro-climatic conditions. About half of the country’s territory (about 32 mln ha) is arable land and half of it consists of the most productive black soils in the world providing an excellent basis for the production of crops, livestock and biomass for energy use. Roughly one-third of the worldwide stock of black soils is located in Ukraine. Since 2000, agriculture has been growing at about 3.2% average annual growth rate. Cereals (primarily wheat, corn and barley), oilseeds (primarily sunflower, recently also rapeseed and soy bean) and potatoes dominate Ukrainian crop production. Wheat, barley and sunflower seeds together cover about 70% of Ukraine’s total arable land. Meat output has been steadily increasing from the mid 90’s bottom and reached 2.1 mln tons in 2010. The decline in meat output has been mitigated by impressive growth in the large-scale poultry sector from 0.2 mln tons in 1995 up to 1 mln tons in 2010. Pork production has been stagnating over the last decade with some short-run fluctuations in the range of 0.5-0.6 mln tons. And beef has been demonstrating sustainable signs of decrease from approximately 1.5 mln tons in 1990 to 0.4 mln tons in 2010. Total milk output dropped from 24.5 mln tons in 1990 to approximately 11 mln tons in 2010. Agri-food sector plays a visible role in Ukrainian foreign trade. Agriculture accounted for 9.2% of total exports and 4.6% of total imports in 2010. The agri-food sector significantly contributes to the trade balance of Ukraine. Key opportunities ξ investment opportunities in every segment of the agri-food value chain; ξ sharing UK’s leading expertise in arable crops production (e.g. cereals, sugarbeets, oil seeds), horticulture, non-food crops production; ξ new technologies in beef and dairy farming; ξ food safety standards ξ specialist capacity development (agronomists, veterinary specialists, technicians, managers etc) ξ crop protection ξ storage of agricultural products ξ processing of agricultural products ξ efficient marketing of agricultural products ξ agricultural machinery building Latest export opportunities – Agriculture, Horticulture & Fisheries Latest export opportunities – Ukraine Getting into the market Ukraine is not an easy market to enter. We would recommend starting with: ξ Market research – similar markets are not the same! Simple market research will point out potential pitfalls as well as open up opportunities. ξ Getting the right local advice: the most complex problems in entering the market may have a simple and affordable solution if you get it right, with good legal, tax and accounting advice. The following legal forms for foreign businesses are available: general partnership; limited partnership; added liability company; limited liability company; and joint stock company. Some industries, including banks and insurance companies, are more heavily regulated and must be established in compliance with specific requirements. A representative office can carry out marketing, promotional and other auxiliary and preparatory functions on behalf of the company. There is no prohibition for a foreign legal entity to have both a representative office and to establish a wholly-owned subsidiary at the same time. The most common legal forms for conducting business activities in Ukraine are joint stock companies (JSC) and limited liability companies (LLC). More about doing business in Ukraine Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Victoria Burachenko, UKTI, British Embassy Kyiv. Tel: +38 044 490 3674 or email: Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Animal Farming Ukraine 31 October – 2 November 2012 Latest events – Agriculture, Horticulture & Fisheries Useful links More about OMIS and other UKTI services for exporters
Posted: 26 May 2012

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