There are very favourable conditions in Ukraine for agricultural production. The country’s terrain is 95 percent plain, and most of the territory has a moderate continental climate. Ukraine possesses one-third of the world’s supply of black earth and a quarter of the arable land in Europe.

This is approximately 0.65 hectares of arable land per every Ukrainian citizen. For comparison, this index in Europe is 0.21 hectares. Black earths are high-quality fertile soils. Black earth occupies 60 percent of the country’s land area and has a humus-enriched layer, which is 40–50 and more centimeters thick. Under the right cultivation such soils yield the biggest crops of agricultural cultures. Today, agricultural lands occupy approximately 70 percent of the country’s entire territory.

For centuries Ukraine has been supplying wheat to European markets and it got its fame as a “breadbasket” when it was part of the Soviet Union. Up to now, Ukraine has consistently been among the top 10 grain exporting countries in the world every year. In terms of export volumes of sunflower oil, Ukraine has been the top country in the world in the last several years.

Compared to 2007, the year 2008 was productive for Ukrainian agrarians. It became a record year, when for the first time in the last 17 years more than 48 million tons of grains were harvested. About 20 to 22 million tons are planned to be offered for export.

Ukraine’s agricultural economy has a much larger production potential. According to estimates of experts of the UN Food and Agriculture Organization (FAO), Ukraine has the possibility of increasing its volumes of wheat by more than 2–2.5 times, which is especially significant considering the world food crisis. Ukraine is one of few states with the possibility of broader usage of its arable lands and substantial intensification of production without serious ecological consequences. After many decades of domination by monopolistic state ownership, the Ukrainian agricultural market is currently undergoing the stage of its establishment and drastic infrastructure development. Commodity exchanges, auctions, information and marketing network, and a state system of monitoring are being created and land reform is underway. 72.4 percent of agricultural lands have been passed into private ownership for purpose-oriented usage, and as of today, the process of issuing state acts on land to their owners is still ongoing. Moratorium on the sale of land is still in effect in the country. The transformation of the agricultural economy into an agrarian business that operates according to market mechanisms is a priority for the government of Ukraine and all market players. A range of state programs has been developed with a view of reforming and supporting the country’s agro-industrial complex.

Ministry of Agrarian Policy of Ukraine
www.minagro.gov.ua

Ukragroservice
www.ukragroservice.com