The Ministry of Agrarian Policy and Food of Ukraine is working with investors from the UAE who have expressed interest in investments in Ukraine’s agricultural sector.

 This includes UAE institutions and companies in the irrigation sector. The subject was the matter of discussion during a meeting of the Agrarian Policy Ministry representatives with the UAE government delegation led by Minister of State for Food and Water Security of the United Arab Emirates, Mariam Almheiri (ukrinform reports). “The Ukrainian side expressed a keen interest in attracting investments of UAE’s financial institutions and companies in the irrigation sector of Ukraine in view of favorable conditions for doing business,

A new grain terminal to be built at Yuzhny port.

 According to the Administration of Sea Ports of Ukraine (USPA). TC Tehagro LLC presented the project for the construction of a new grain terminal to the Council of the Administration of the Yuzhny (Pivdenny) on September 8, 2021. Construction is scheduled to begin in 2022 and will take 44 months. The payback period for the project is 6 years. The new terminal will be located on Yuzhny port land which is 2.88 hectares repots the Odessa Journal. It will be

Almost 36,000 hectares of agricultural land have been sold in Ukraine.

As of September 13, Ukraine registered 15,533 agreements on the purchase and sale of agricultural land (Ukrinform). According to the Ministry, 4,943 notaries submitted applications for access to the State Land Cadastre. The largest areas of farmland sold were in the Kropyvnytskyi region (4,930.9 hectares), the Kharkiv region (4,236 hectares), and the Poltava region (3,599.5 hectares).

Ukraine exports 10.3 mln tones of cereals and legumes

at the beginning of the period 2021/2022. Since the beginning of the 2021/2022 marketing year, Ukraine has exported 10.29 million tons of grain and leguminous crops.  This figure is 11.7% more than the previous period of 2020/2021 when Ukraine exported 5.92 million tons of wheat (4.1% less compared to the same date 2020/2021 marketing year); 2.99 million tons of barley (up 24.7%); 1.34 million tons of corn (2.2 times more); and 24,700 tons of flour (33.7% less).

IFC & Ukraine agree to develop irrigation infrastructure.

The International Finance Corporation (IFC) and the Ministry of Agrarian Policy and Food have signed an MOU to modernize and develop the irrigation and drainage sector in Ukraine. The aim is to increase private sector participation in an inclusive and climate-resilient agricultural sector. According to the World Bank, irrigating 1 million hectares of land in southern Ukraine, the country’s driest region, would require $2 billion in investment. IFC has agreed to assist to help the government develop a plan for

More than 13,000 land agreements are now registered in Ukraine.

As of September 6, 12,784 agreements on the purchase and sale of agricultural land have been concluded.  27, 810 hectares of agricultural land have been sold throughout the country since July 1, 2021. The largest areas of farmland sold were in the Kirovohrad region (3,329.2 ha), the Kharkiv region (3,320.7 ha), and the Poltava region (2,903.5 ha). In terms of the number of concluded agreements, the leaders are the Kyiv region (1,156 agreements), the Poltava region (1,123 agreements), and the

Ukraine records one of its hottest summers and the implications of global warming.

With temperatures regularly rising above 40C, this threatens its agriculture sector that accounts for “Water unavailability and heat stress during periods of increased temperature already impact the yield of the crops,” Mykola Shlapak, a Kherson-based independent consultant on climate change mitigation,” says. Climate change is creating more and more “extreme weather events.” In July, farmers in the Kherson region lost a significant portion of their products because of heavy rainfalls.

The serious challenge posed by desertification and lack of proper irrigation systems.

Due to desertification, the lack of investment and poor technologies, 20% of Ukraine’s arable land is degraded and unproductive. Farmers have been forced to get creative as the old and under-maintained irrigation system can’t compensate for the new lack of rainfalls. Only 600,000 hectares of Ukraine’s arable land currently have a functioning irrigation system, compared with 2.6mn hectares in the Soviet period.

Scope for deepening cooperation with World Bank identified.

President Zelensky discussed with World Bank Group President David Malpass land reform, irrigation, and agricultural development. He reported that the World Bank is ready to support land reform, irrigation, and development of the agricultural sector, and participate in infrastructure projects, energy programs, and the improvement of the banking sector.

Ukraine has boosted exports of agricultural produce this year

 compared to 2020, the Ministry of Agrarian Policy reports. As of August 25, exports the 2021/2022 marketing year (MY, began on Jul. 1, 2021) reached 6.488 million tonnes, which is 127,000 tonnes more than in the same period last MY. Ukraine exported 3.127 million tonnes of wheat (-778,000 tonnes compared to the relevant period last MY), 2.164 million tonnes of barley (+256,000 tonnes), 6,800 tonnes of rye (+6,000 tonnes), and 1.172 million tonnes of corn (+640,000 tonnes) .It also exported

After being launched on July 1, 2020, the land market reform is showing results.

As of August 25, 9,072 agreements have been concluded within its framework. Transactions for 19,356 hectares of land were registered. Most land plots were sold in Poltava region (2,284 ha), Kharkiv region (almost 2,198 ha), and Kirovohrad region (almost 1,590 ha). Until 2024, only citizens of Ukraine will be able to buy agricultural land with a limit of 100 hectares. Selling land to foreigners is due to be decided by a national referendum.

After battling wildfires last week, Algeria is citing climate change as the reason for reaching out to Ukraine Tuesday to boost grain imports,

Mykola Gorbachev, president of the Ukrainian Grain Association, writes on Facebook. “Algerian representatives stressed that due to climate change, Algeria will need to increase grain imports, and Ukraine could become a partner,” he said after an online meeting Tuesday with representatives of the Algerian Grain Procurement Office. To raise purchases above last year’s low level of 200,000 tons, Gorbachev advised the Algerians to double their insect damage limit to 1% — the Maghreb standard. Gorbachev estimates that Ukraine will export

Farming was the most profitable economic activity in Ukraine last year, netting $3 billion,

reports the National Scientific Center Institute of Agrarian Economics. Of the nation’s farms, 83% made money, and 17% lost money. In 2019, a year of record grain harvests, profits were 13% higher — $3.4 billion. This year, with the grain harvest expected to be an all time record, farming profits are expected to also hit record levels.

In a turnaround, Ukraine’s food exports to the EU are up 10% yoy, to $3.7 billion, for the first seven months of this year,

 reports the Ukrainian Agribusiness Club. Last year, Ukraine’s good exports to the EU dropped by 11%, compared to 2019. So far this year, Ukraine has used up five quotas for duty-free exports of food to the EU: honey, cereals and flour, processed starch, processed tomatoes, grape and apple juice. For the first three quarters of the year, quotas have been used for eggs and poultry.

Ukraine cut exports of organic food products by 30% last year, but earned 8% more,

according to a Swiss-Ukrainian study, cited by organicinfo news site. The EU bought 73% of the 332,000 tons of organic food exported last year by Ukraine. By selling 80 organic products to 40 countries, Ukraine made $204 million last year. Ukraine is the fourth largest supplier of organic food to the EU, after Ecuador, the Dominican Republic and China.

Since Ukraine’s new farm land market started on July 1, 5,552 sales agreements have been approved.

The average price is $1,500 per hectare. “Everything is working normally, without conflicts,” Prime Minister Shmygal told the Cabinet yesterday. Until the end of 2023, sales can only between Ukrainian individuals for a maximum of 100 hectares. Starting in 2024 Ukrainian companies can participate, buying up to 10,000 hectares. A national referendum is to decide if foreigners and foreign companies can participate in the market.

“Phenomenal yields” are pushing Ukraine’s wheat harvest to an all time record this summer

, the Canada-based Western Producer news site reports in an article headlined: “Ukraine shines as Black Sea wheat takes hit.” Russia’s harvest may drop 4% to 82 million tons and Kazakhstan production is to fall to 12 million tons. In contrast, Grain Trade Ukraine predicts a 32 million ton crop for Ukraine – 11% higher than the previous record: 28.8 million tons in 2019.

Underlining Ukraine’s role as a world food power,

exports of all grains are expected to hit 56 million tons, from a record harvest of 75.8 million tons, the Agrarian Policy and Food Ministry predicted on Monday. During the current 2021-2022 market year, Ukraine expects to export 21 million tons of wheat and 31 million tons of corn. By contrast, Russia expects to export 37 million tons of wheat, according to SovEcon, the Moscow-based agricultural consulting company.

Cargill, the US food giant, has acquired 51% ownership in Neptune Grain Terminal

in Pivdennyi, Ukraine’s busiest Black Sea port. Designed to handle 5 million tons of grain a year, the terminal berth has a 16-meter water depth. Minority owner Andriy Stavnitser, of M.V. Cargo LLC, says Neptune is now the second business grain terminal on the Black Sea. Cargill said: “Neptune is meeting the growing demand for deep water port infrastructure in Ukraine by giving farmers access to new distant markets.”

Harvests of wheat, barley and peas are going well.

 With high yields, Ukrainian farmers have harvested 14 million tons from 22% of the forecast area. To date, about half of the nation’s winter barley and peas crops have been harvested. This does not include 9 million tons of winter wheat have been harvested, almost one third of the forecast. If current yields hold up, the Agriculture Ministers forecasts a 17% increase in the harvest of grain and legumes over last year. Of the 76 million tons, exports could reach

Ukraine kept its position as the fourth largest source of food imports for the EU, after Brazil, the US and the UK

during the first four months of this year.  Ukraine’s food exports to the EU actually dropped by 19% yoy, according to the European Commission’s report “Monitoring EU Agri-Food Trade: Developments January-April 2021.” The drop appears to be largely explained by Britain’s withdrawal from the European Single Market on January 1, 2021.

Climate change means that agricultural zones are shifting north “by hundreds of kilometers,”

Agriculture Minister Roman Leshchenko said speaking at a farming forum in Kyiv yesterday. “The temperature has risen by more than 1 degree Celsius in 10 years — this has a very serious impact on the agricultural area,” he said. “With such dynamics as today, we can reach a situation where 2/3 of the territory of Ukraine will become a zone of risky agriculture.” As palliative measures, he recommended: irrigation, low till farming and planting of forest windbreaks to minimize erosion.

Germany’s Labor Ministry is speaking with its Ukraine counterparts about allowing Ukrainians to do seasonal farm work

. AT present, there are only 20,000 international workers in Germany which are classed as ‘holiday workers.’ The country has signed a pilot agreement with Georgia and Ukraine to allow workers to enter under simplified rules to work 90 days in a 180-day period. The situation is critical for the agricultural sector, as German farmers say they need 300,000 workers in the summer.

In its first week, Ukraine’s farmland market has seen 322 transactions

, Prime Minister Shmygal advised the Ukraine Reform Conference in Vilnius yesterday. “Myths about the mass sale of land and the export of Ukrainian black soil remain just myths,” he said. Currently limited to sales of 100 hectares or less between Ukrainians, the market is to grow after January 1, 2024. Then, Ukrainian companies will be allowed to purchase up to 10,000 hectares. Shmygal has predicted that the farmland market will generate $10 billion in new investment.

Vowing a “record increase in tariffs,” Infrastructure Minister Alexander Kubrakov plans to raise iron and coal rail freight rates to those of grains.

 For years, farmers have complained that Ukrzaliznytsia grain rates subsidize below market freight rates for iron, coal, cement, and fertilizer producers. Across the board, all rates would increase by 8% in September 2021. In January 2022, grain rates would increase again by another 6.5%, but the freight for the wider category would go up by 20.4%. This “rate convergence” would bring an extra $400 million to the state railroad fiscal coffers next year.

The FAO’s global food price index has increased by 40% yoy, reaching the highest level in a decade

, The Washington Post reports in a story headlined: “Surging global food prices put staple meals out of reach, from Nigerian jollof rice to Russian pasta and Argentine steak.” “A variety of factors are to blame, including a surge in orders from China, fluctuating oil prices, a sliding U.S. dollar, and looming above all: the pandemic,” the Post reports, citing the UN’s Food and Agriculture Organization. “But experts say that in the face of growing populations, globalization and climate change,

From today, Ukrainians can sell their farmland, a right largely lost after the communist takeover one century ago.

“Ukrainians will become the real masters of their land, because they will be able not only to own it, but also to dispose of it freely,” Prime Minister Shmygal wrote yesterday on Telegram. “There is not a single successful country where there is a moratorium on the introduction of a civilized land market.” Ukraine’s largest export industry, agriculture cultivates annually 32 million hectares, an area larger than Italy.

The market starts with limits – sales are only permitted between Ukrainians for areas less than 100 hectares.

The Economy Ministry estimates that the average price of a hectare will be around $2,000. On January 1, 2024, the market will expand to Ukrainian-owned companies and the size limit will increase to 10,000 hectares. Allowing foreigners to buy Ukrainian farmland is only to be decided by a national referendum. At present, polls indicate that Ukrainians are opposed to the sale of land to foreigners.

From the start, farmers cultivating up to 500 hectares will be eligible for bank loans

sponsored by a new fund, the Partial Credit Guarantee Fund for Agriculture. When farmland goes up for sale, tenants have the first right of refusal to buy. Landlords must notify tenants in writing of their intention to sell the land, indicating price and terms of sale. Sellers will have to pay 5% personal income tax and 1.5% military duty tax on the cost of the plot sold. Minister of Agrarian Policy and Food Roman Leshchenko posted on his Facebook page

Dobrozem, an online farmland sales platform and consultancy, was launched today,

announced the founders Alex Lissitsa, General Director of IMK agricultural holding, Dmytro Dubilet, a former executive at Monobank, the online bank. “The main idea of Dobrozem is to give people the opportunity to buy or sell land honestly and transparently,” Lissitsa writes on Facebook. “The process of buying / selling land in our country is quite complicated,” Dubilet writes on his Telegram channel. “It involves notaries, banks, appraisers, tenants with priority right of redemption. We have worked out this process

China’s trade war with Australia could lead to a doubling and tripling of Ukraine’s grain exports to China,

Mykola Gorbachov, President of the Ukrainian Grain Association, tells Argus Media after signing a binational deal in June. This year, Ukraine has nearly tripled its barley exports to China. Ukraine now accounts for two thirds of China’s barley imports. For October-April, Ukraine’s corn exports to China are 7.3 million tons, up by one third compared to all of last year.

To turn around Ukraine’s declining dairy production, the government should extend $200 million a year in support to the sector,

Vadym Chaharovsky, head of Ukraine’s Union of Dairy Enterprises, told reporters on Tuesday. By contrast, he said, the EU’s dairy subsidies amount to €10 billion a year. Ukraine also should stop importing dairy products from Belarus. Five years ago, Belarus joined Russia’s embargo of Ukraine dairy products.

Well-timed rains are pushing this year’s harvest to a record 100 million tons of grains, oilseeds and beans,

Nikolay Gorbachov, president of the Ukrainian Grain Association predicted at the recent International Grains Council’s Grain Conference. “What I can tell you about Ukraine is the conditions are just perfect,” Gorbachov told the online conference, The Western Producer reports from Saskatchewan, Canada. Ukraine’s previous harvest record was 98.3 million tons set in 2019-20. Twenty years ago, this combined harvest was 9.5 million tons.