Agriculture of Ukraine - opportunities for companies

The Ukrainian agricultural sector is quite promising in terms of both foreign exports and investment. There are a number of opportunities for foreign companies in Ukraine.

1) Machinery. Ukrainian farmers prefer buying expensive machinery on leasing terms. The bank credits, however, have recently become more expensive due to the high inflation rate, which makes them less affordable for small farms. Local farmers are not allowed to buy imported farming equipment using state subsidies. Considering that many dealers selling imported machinery cannot provide quality aftersale service and training to customers, attention should be paid to selecting, training and supporting appropriate local companies.

2) Renewables, mainly rapeseed. Growing rapeseed in Ukraine becomes profitable. The local soil is suitable for this plant and there is a large market in Europe where it can be exported. Producing renewable fuels such as biodiesel and bioethanol however, is not yet profitable because high world prices make it more viable to export rapeseed or rapeseed oil than to process it domestically.

3) Animal feed components (e.g. premixes, vitamins).

4) Chemicals and plant fertilizers. Considering the size of the country, its climate characteristics and developing economy, there is an increasing interest in quality fertilizers and crop protection chemicals.

Related article:

Agricultural holdings in Ukraine

by Andriy Tovstopyat, Dr. Alex Lissitsa, Ukrainian Agribusiness Club

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