Due to the quality of the farming land and favorable climate Ukraine has become an important trading partner in the global agribusiness and is expanding its possibilities.
Ukrainian export of crops in 2015-2016 marketing year amounted to 39.4 million tonnes, which is the record-breaking figure. Next year the export figures are expected to be even higher.
During 2015-2016 marketing year Ukraine managed to export 17.35 million tonnes of grain, 17.40 million tonnes of corn, 4.41 tonnes of barley, and 256 thousand tonnes of other crops. Thus Ukraine is one of the three biggest exporters of crops in the word. Besides Ukraine is among the biggest producers of sunflower oil in the world.
Ukraine is also increasing the export of poultry to the European countries and courtiers of the Middle East. Due to substantial orders from the Middle East this region is becoming a strategic trading partner for the Ukrainian agricultural sector.
In the first quarter of 2016 Ukrainian agricultural export to EU increased by 15.3% (or USD 155 million), which is largely attributed to the implementation of EU-Ukraine Free Trade Zone Agreement signed in 2014. Additionally, it is notable that the countries of the Middle East are also increasing their interest in Ukrainian products.
Agriculture is one of the most attractive sectors of the Ukrainian economy. Agriculture provides 14% of the total GDP of Ukraine. Exports of the agricultural sector amounts approximately to 35% of Ukraine’s total exports. There are over 3 million people employed in agricultural industry, which constitutes more than 17% of all employed persons in Ukraine.
One of the most notable positions of the Ukrainian parliament for the coming year is to develop an action plan for drafting a law, which will allow sale of state-owned agricultural land in 2017. This will provide an opportunity to establish a fully functioning market of agricultural land upon lifting of the moratorium on sale of such land. As soon as this happens foreign companies will be allowed to purchase farming land in Ukraine and start their agricultural business. The Ukrainian agricultural legislation is also undergoing reforms to make it more suitable for business.