Ukraine agriculture feeds its economy

Ukraine claims its position as one of the leading agricultural countries in the world.

The country possesses 30% of the world’s black earth– the most favorable soil for agriculture.

In 2011, the agricultural production increased by 17.5% year over year, reported the State Statistics Service. The highest growth was seen in the north eastern Ukraine (Kharkiv, Poltava, and Symy regions). Interestingly, both agricultural firms and households experienced production growth of 23.8% and 12.3%, respectively.

The sector is making more money.  In 2011 State Statistics Service data show  agricultural profits rose by 52.3% year over year, to UAH 19.8bn (USD 2.5bn).  Not only that, it seems more farmers are getting better at becoming profitable.  Income 79% of enterprises engaged in agricultural production and services we profitable.

The EBRD believes Ukraine has great potential in agriculture, and should be attracting investors  Indeed, they are unafraid to put their money where their mouth is.  Others are less intrepid.  Frequent changes in legislation tend to impede investment.

These are only a few of the insights found in the June 2012 number of the  IntelliNews Ukraine Food SectorReport,.. Read more and purchase>>