Ukraine expects to have the largest grain harvest in 2016

Ukraine economy, doing business in Ukraine: largest grain harvest expected in 2016

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The Ministry of Agricultural Policy and Food of Ukraine forecasts that in 2016 Ukraine will have the biggest grain harvest in the history of the country. Thus, according to the preliminary estimations, in the grain harvest in 2016 will amount to 64 million tons with the average yield of 44 centners per hectare. The biggest harvest is forecasted for Vinnystsia (5.4 million tons), Odesa, Poltava and Kharkiv regions (4 million tons).

We note that Ukrainian export of crops in 2015-2016 market year amounted to 39.4 million tonnes, which is the record breaking figure. Last market year export of crops from Ukraine was on 4.6 million tonnes lower. During 2015-2016 market 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.

In 2016 the grain terminal facilities have been commissioned by such companies as Noble, Bunge, Louis Dreyfus, Risoil S.A. and Allseeds at Mykolaiv, Odessa, Illichivsk and Yuznii sea ports. In addition, there are 12 more terminals which are currently are being constructed with the aggregate capacity of 23 million tonnes per year. Investors also announced that by 2020 they expect Ukraine to have aggregate grain terminals’ capacity of 100 million tonnes per year.

Agriculture is one of the most attractive sectors of the Ukrainian economy. According to the Ministry of Agrarian Policy and Food of Ukraine, agriculture provides 14% of the total GDP of Ukraine. Exports of the agricultural sector in 2015 amounted to USD 14.6 billion, representing the unprecedented 38.2% of Ukraine’s total exports. Last year the agricultural sector attracted over one billion USD of investment. There are over 3 million people employed in agricultural industry, which constitutes more than 17% of all employed persons in Ukraine.

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