Ukrainian Agriculture

The Ukraine is blessed with its famous humus-rich black soil (chernozem), one of the most naturally fertile soils in the world, a flat terrain and a temperate climate with adequate rainfall. It has been known as “the breadbasket of Europe” because of its substantial grain production. Some 70% of Ukraine is suitable for agricultural production and some 80% of that is given over to cereal farming.

Farming employs some 20% of all Ukrainian workers and produces over 9% of the country’s GDP.

The country has an inbuilt historical bias towards farming and is well provided with agricultural colleges and universities. Although much of the land is still beneficially owned by many small owners following the distribution of the land to individual families after the fall of communism, in most areas consolidation of individual holdings into larger holdings with fields of over 100 hectares is also capable of boosting productivity.

Ukraine supplies some 9% of the world’s grain exports (8% of wheat, 4% of maize, 35% of barley, 40% of sunflower oil and 5% of sunflower seed). According to the Ministry of Agrarian Policy, Ukraine’s grain harvest is currently running at a rate of some 46 million tonnes, down from 53 million in the year July 2008-June 2009. Exports are estimated at 20 million tonnes (25 million in 2008-9).

However Ukraine’s Economy Minister has stated that the country is aiming to almost double grain production to 80 million tons by 2015. Increased land use, higher yields through the use of improved seeds and fertilisers and further mechanisation could enable the country to achieve this level of production.

As the internal cereals needs of the Ukraine would not substantially alter following the achievement of the 80 million tonnes target, the extra 30 million tons produced would be exported, thus more than doubling export volumes, to the benefit of ports like Kherson.