Agricuture in Ukraine
Plan
1. Potential of agriculture
2. Major crops
3. Agriculture machinery
4. Problems of this sector of economy
5. Investment in agriculture
1. Potential of agriculture
Ukraine is blessed with rich farming and forestry resources. According to the Statistical Year Book of Ukraine (1996), about 71 percent of the country's surface (41 million hectares) was used for agricultural activities.
About 80 percent of the agricultural area is arable land, two-thirds of it the agriculturally rich "black soil" (chernozem). The primary food harvest products are barley, maize, potatoes, rice, soybeans, sugar beets, and wheat. The primary meat products are beef and veal, lamb, pork, chicken, horse, and rabbit. In terms of value, the largest agricultural exports in 1998 were refined sugar, raw sugar, beef and veal, sunflower seed, and fish. The total value of agricultural exports in 1998 estimated $1.898 billion. The total value of agricultural imports in 1998 was $999 million. The largest single crop produced in 1999 was potatoes at 15.4 million metric tons. The number-two crop was sugar beets at 13.89 million metric tons, followed by wheat at 13.47 million metric tons. The main livestock product was beef and veal with 786,000 metric tons, followed by swine with 668,000 tons, and chicken with 194,500 tons.
In recent years, agricultural production has declined drastically because of a decrease in the number of tractors and combine harvesters in working order and to the lack of fertilizers and pesticides. According to official data, between 1991 and 1997, the number of tractors in use decreased from 497,300 to 361,000. (In order to operate efficiently, it is estimated that the country would need 515,000 tractors in use.) Similar shortfalls exist for harvesting combines. Between 1990 and 1997, the consumption of pesticides and fertilizers per hectare declined about 78 percent. From 1995 to 1999, crop production declined by an average of almost 10 percent per year, while livestock production declined by an average of 9 percent per year. These shortfalls in agricultural inputs reflect declining investment in agriculture, and feed directly into declining production.
Under communism, agricultural lands were held by the government and worked by the people, who owned no land. Privatization planned to shift most such land into the hands of individuals and farming collectives (jointly held farming cooperatives). By August 1995, the transfer of lands into private hands had begun. Over 8 million hectares of land had been privatized, with plots averaging 5 hectares. By 1996, most of the agricultural land in Ukraine was in collective and private hands, although 40 percent was still owned by the government. Household plots and private farms accounted for about 15 percent of the Ukrainian territory and they filled an important role in the delivery of products to the marketplace.
In general, the agricultural sector is experiencing serious internal difficulties, due to the transitional nature of the economy. A new policy and direction for Ukraine's agricultural sector is necessary. Agriculture poses the greatest challenge to the survival of Ukraine's political leaders, because almost half of the Ukraine's population live in rural areas.
About 57% of the total land area is arable, with another 11% utilized as permanent pasture land. Agriculture accounted for 17% of GDP in 2001. As in other former Soviet republics, total agricultural production has dramatically declined since 1990. Although the rate of decline is slowing, yearly declines still prevail. The average annual decline during 1990–2000 was 5.8%. By 1999, the agricultural sector was only producing 47% as much as it had during 1989–91. Production amounts in 1999 included (in 1,000 tons): sugar beets, 13,890; potatoes, 15,405; wheat, 13,476; dry peas, 510; fruit, 1,594; sunflower seeds, 2,750; cabbage, 1,015; grapes, 270; wine, 73; soybeans, 42; and tobacco, 3.
Ukraine's steppe region in the south is possibly the most fertile region in the world. Ukraine's famous humus-rich black soil accounts for one-third of the world's black soil and holds great potential for agricultural production. However, the soil is rapidly losing its fertility due to improper land and crop management. Ukraine typically produced over half of the sugar beets and one-fifth of all grains grown for the former USSR. In addition, two of the largest vegetable-oil research centers in the world are at Odessa and Zaporizhzhya. Agroindustry accounts for one-third of agricultural employment. To some extent, however, agroindustrial development has been hampered by the deteriorating environment as well as a shortage of investment funds due to the aftermath of the nuclear power plant disaster at Chernobyl. According to estimates, nearly 60,000 hectares (148,250 acres) of arable land in the Chernobyl vicinity are now unavailable for cultivation. Out of 33 million ha (81.5 million acres) of total arable land, more than 17 million ha (42 million acres) are depleted, 10 million ha (24.7 million acres) are eroded, and another 10 million have excessive acidity. Furthermore, 17% of arable land is located in areas where there is risk of drought.
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