September 15, 2008

Ukraine Needs to Broaden Its “Grain Export Corridor” and Create Agricultural Infrastructure

According to statements by Government officials, Ukraine plans to export 22.5 million tons of grain this year. However, the capacity of the existing “grain corridor” makes it possible to bring just 14 million tons outside the country during one year.

Surplus grain left inside the country will cause the purchasing prices of grain crops to continue dropping amid high supply. That is why today’s main problem of Ukrainian agriculture is insufficient facilities for storing grain crops and transporting them abroad.

 "This year Ukraine has harvested really a record grain crop, but the country is short of facilities at which to store grain until prices reach their highest point on the world markets. Ukrainian farmers are trying to sell it within the shortest time possible due to their having no opportunity to store it.  In order to step up its export capacity in the future, Ukraine needs to build new facilities for drying and storing grain, new automobiles and railroads, ports, etc., but that is not all.  Ukrainian agriculture needs a global approach: implantation of advanced techniques of raising crops, development of related activities (e,g, livestock farming and processing), implantation of the technology of producing biological fuel,” Vitaliy Skotsyk, director general of AMACO, pointed out.

Agriculture has already taken up a significant share of Ukraine's GDP, but its potential is much bigger, because agriculture is more than the production and processing of agricultural products. However, in order to be able to develop its infrastructure, agriculture needs investments.


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