Business news from Ukraine

Ukraine could increase its annual agricultural exports from $24.2 billion to over $100 billion by shifting from exporting raw materials to increasing the production of deeply processed products, which would require $85 billion in investments, said Leonid Kozachenko, president of the Ukrainian Agrarian Confederation (UAC).

“We have the best opportunities among other countries, as almost 30% of the world’s black soil is concentrated in Ukraine. However, it is surprising that a country like the Netherlands, with 4.5 times less land, produces food and derivative products worth about $108 billion. They use less than 20% of their own raw materials, import 80%, but rank 2nd or 3rd in the world, while we, with our raw materials, are only in the third ten,“ he said at the conference ”Profitable Agribusiness 2026.”

According to the expert, the total capitalization losses of the agricultural sector from the Russian Federation’s military aggression are currently estimated at more than $120 billion, while direct losses amount to $11.5 billion. In particular, almost 4.7-5 million hectares of land remain mined or contaminated with heavy metals. Livestock losses amount to 5 million chickens, 350,000 pigs, and 150,000 cows. In addition, more than 7,000 units of agricultural equipment and hundreds of logistics facilities have been lost.

Kozachenko expressed confidence that if the genetic potential of plants and animals is realized by at least 90%, Ukraine will be able to reach production levels of 150 million tons of grain and oilseeds, 25 million tons of milk, and up to 10 million tons of meat.

To realize this potential, according to the UAC president, Ukraine needs to attract $85 billion in investments over the next 10 years. These funds should be directed towards the development of the food, pharmaceutical and perfume industries ($37 billion), livestock farming ($18 billion), crop production ($8 billion), irrigation restoration ($7 billion) and bioenergy development ($5.5 billion). Another $10 billion should be allocated to logistics, horticulture, and greenhouse farming.

To stimulate the development of the agricultural sector, the UAC proposes introducing land and network connection incentives for deep processing plants, introducing a 25% subsidy for equipment, and creating a specialized mortgage banking institution. It is also proposed to involve international companies in the certification of products according to European standards directly in Ukraine.

“We have found financial resources of over $50 billion that were ready to be given to us to create the first mortgage bank in Ukraine. We have everything we need to launch this mechanism, so let’s work together to convince officials to start using it. We really need to cross the $100 billion gross output threshold, and this should be our strategic priority for the next decade,” Kozachenko emphasized.

The UAC president also announced joint proposals from a number of agricultural associations to accelerate the privatization of state-owned enterprises that can be involved in processing chains and to stimulate the development of industrial parks with special fiscal conditions. In particular, agricultural associations propose introducing subsidies of 10% for enterprises that use domestically produced deep-processed raw materials in their production and providing state guarantees to foreign creditors for the purchase of technological equipment.

An important aspect remains the digitization of the industry, in particular the creation of digital platforms for entering global markets, following the example of the Ukrainian resource Allbiz, which specializes in e-commerce and structuring offers in the B2B sector, as well as the introduction of European licensing practices through accredited offices of international certification companies, the UAC president concluded.