The main component of the agro-industrial complex in Ukraine is agricultural production, which includes agricultural crop and livestock production volumes.
Crop production volumes for the three years from 2017 to 2019 increased by 8.2% in total, despite the fact that from 2018 to 2019 the growth was negative, but the indicators are so low that they have no impact on the further development of this industry.
The publisher's analysts predict a possible 3.6% drop in agricultural production in Ukraine in 2020, which will be primarily due to a 5% drop in crop production, mainly grain production - by 10%. The livestock market may grow by 0.6% due to an increase in poultry production, while other industries will continue to decline.
An analysis of the agro-industrial market has shown that global demand for coarse grains will fall due to a fall in demand for meat and low oil prices (which means less corn is being used for bioethanol production in the USA, i.e. more corn is being placed directly on the market). The situation with protein meals is similar. All the more so because the demand for milk in the world is falling, and these problems are already being felt in Ukraine. The outlook for sugar is also bad, because oil is cheaper, which means that Brazil processes cane for sugar instead of bioethanol.
The Ukrainian agricultural market will also be affected by unfavourable climatic conditions in 2020. In March, there was not a single effective rainfall in many parts of the country's southern regions, and therefore most areas under crop were rated as having the lowest productive moisture reserves per metre of soil for the early spring season. Drought in Ukraine will also result in the emptying of reservoirs and the drying up of rivers, which will lead to a more rational irrigation process. There will be increased market demand for irrigation systems to reduce crop losses. The increase in demand will only be due to drought in 2020, but also to the general trend of global warming.
In Ukraine, in 2020, there were changes in legislation concerning the land market, according to which, from July 1, 2021, ownership of agricultural land plots of up to 100 hectares can be acquired only by citizens of Ukraine. Starting from 1 January 2024, legal entities owned by Ukrainians will also have this possibility. They will be able to buy up to 10,000 hectares of land. These changes will attract investors in the agricultural sector of Ukraine. Also, after permission to buy and sell land in the amount of 10,000 hectares, the bulk of grain will be produced by medium-sized farmers - they will be the most efficient. Agroholdings will slowly begin to restructure: they will begin to reduce their land bank, concentrate on grain export, develop logistics and processing.
Crop production volumes for the three years from 2017 to 2019 increased by 8.2% in total, despite the fact that from 2018 to 2019 the growth was negative, but the indicators are so low that they have no impact on the further development of this industry.
The publisher's analysts predict a possible 3.6% drop in agricultural production in Ukraine in 2020, which will be primarily due to a 5% drop in crop production, mainly grain production - by 10%. The livestock market may grow by 0.6% due to an increase in poultry production, while other industries will continue to decline.
An analysis of the agro-industrial market has shown that global demand for coarse grains will fall due to a fall in demand for meat and low oil prices (which means less corn is being used for bioethanol production in the USA, i.e. more corn is being placed directly on the market). The situation with protein meals is similar. All the more so because the demand for milk in the world is falling, and these problems are already being felt in Ukraine. The outlook for sugar is also bad, because oil is cheaper, which means that Brazil processes cane for sugar instead of bioethanol.
The Ukrainian agricultural market will also be affected by unfavourable climatic conditions in 2020. In March, there was not a single effective rainfall in many parts of the country's southern regions, and therefore most areas under crop were rated as having the lowest productive moisture reserves per metre of soil for the early spring season. Drought in Ukraine will also result in the emptying of reservoirs and the drying up of rivers, which will lead to a more rational irrigation process. There will be increased market demand for irrigation systems to reduce crop losses. The increase in demand will only be due to drought in 2020, but also to the general trend of global warming.
In Ukraine, in 2020, there were changes in legislation concerning the land market, according to which, from July 1, 2021, ownership of agricultural land plots of up to 100 hectares can be acquired only by citizens of Ukraine. Starting from 1 January 2024, legal entities owned by Ukrainians will also have this possibility. They will be able to buy up to 10,000 hectares of land. These changes will attract investors in the agricultural sector of Ukraine. Also, after permission to buy and sell land in the amount of 10,000 hectares, the bulk of grain will be produced by medium-sized farmers - they will be the most efficient. Agroholdings will slowly begin to restructure: they will begin to reduce their land bank, concentrate on grain export, develop logistics and processing.
Table of Contents
1. Review of the Ukrainian agricultural sector
2 Analysis of agricultural imports (tea, coffee, fish, shrimp, beef, TOP 3)
LIST OF TABLES:
LIST OF GRAPHS AND CHARTS:
