Ukraine will be able to double grain production in 3-5 years

01.08.2013

According to the statements made by the owners of one of the major agrarian holdings in Ukraine, Ukrlandfarming and KSG Agro, grain production in Ukraine can grow by 2-3 times in several years and will reach 120 million tons per annum. Government officials stated a lower number, 80 million tons which may be achieved is the same time period. However it is vital to note that such intensive growth is possible only in case of large investments made in the development of infrastructure and sector in general. Owners of the largest holdings evaluate the investment required at USD 20-25 billion.   

UkrAgroConsult comment: It is particularly difficult to make forecast in agriculture as weather factor, the most uncontrollable one might nullify any forecast. However the important question to be answered is whether the investments as large as USD 20 billion are to be available to even largest Ukrainian holdings in the nearest future. It is very less likely that with the current shaky global economic situation such significant funds are to be invested in the sector. 

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UkrAgroConsult