Agriculture is the flagship of Ukraine’s economics that indeed facilitates Ukraine’s entry to the international level. In 2016, proportion of the agricultural sector in Ukraine’s GDP made up 11,7%, and that as regards export – 43%.
According to the Institute of Agricultural Economics at the National Academy of Sciences of Ukraine, total of investments into agricultural sector within 2016 made up over UAH 22 bln. Total of investments in 2017 amounted to over UAH 70 bln.
Within 2017-2018, the European Bank for Reconstruction and Development is supposed to invest EUR 200 mio into the Ukrainian agricultural sector. The main goal of NATIONAL INNOVATION PROJECTS is to increase both domestic and international investments through optimization of the investment procedures as well as creation of jobs with the country.
Proportion of agricultural sector in Ukraine’s GDP in 2016
Proportion of agricultural sector in Ukraine exports
UAH 44.2 bln
was invested into Ukrainian agriculture in 2016
EUR 150-200 bln
In 2018, the European Bank for Reconstruction and Development is set to invest in Ukraine’s agriculture
The main issues to be tackled are as follows:
- Poor education for the Ukraine’s work force (as reference: 20% of Ukraine’s population is engaged in agriculture)
- Poor motivation for the agricultural legal entities to create jobs
- Complex procedures as per long-term financing
- Lack of optimization in land management
- Land degradation and single-cropping because of absence of scientific reasons for the expert management in the agricultural field
- Inefficient labor management which entails too high prime cost of the crops cultivated
- Difficulties in assimilation to European standards
- Insufficient involvement of up to date technologies
- Optimization of the agricultural sector at state level, namely regulation of prices and farmers’ income; budget financing; crediting; taxation; and stabilization of the agricultural market
- Introduction of the up to date management methods at the domestic agricultural enterprises (teambuilding etc.); utilization of alternative sources of energy; participation in the international and domestic conferences
- Integration of the high end technologies into the production processes, such as, precision agriculture, minimization in farmery, Field Map, GPS
- Increase in the food product standards to allow transition from export of raw materials to export of products at high added value
- Globalization, that is, expansion to the markets of Asia, Africa, Europe, and USA
To promote the Ukrainian agricultural sector worldwide, the NATIONAL INNOVATION PROJECTS team are currently optimizing the transition process from the outdated technologies to involvement of the promising start-ups and cost-effective decisions.