AgriFood sector of Ukraine - investment opportunities
Investing in Ukraine during full-scale war is a well thought decision for many local and international businesses.
russian aggression has led to a significant deficit in working capital for farmers, complicating the purchase of seeds, fertilizers, and fuel for future sowing campaigns. In terms of employment, over 5 million people were forced to leave their homes, resulting in a labor shortage in the agricultural sector. Farmers are actively implementing adaptation strategies to minimize losses. These strategies include changing the planting areas, adopting new technologies, and optimizing costs.
Investments in infrastructure, including irrigation, transportation, and storage, are key to increasing productivity and reducing crop losses. The implementation of modern technologies in agriculture also contributes to improving production efficiency, enabling Ukrainian farmers not only to regain lost positions but also to ensure sustainable growth in the future. With additional investments in improving agricultural practices, education, irrigation, logistics, and high-value-added production, Ukraine has all the prerequisites for restoring food export volumes to pre-war levels and even doubling these figures.
Read the report Agrifood by UkraineInvest
The food industry shows a faster recovery after production declines in 2022. The sector continues to be one of the leaders among manufacturing sectors due to the demand for essential products. However, there are also challenges here - rising raw material costs and export issues due to long wait times at the border.
Since the beginning of the full-scale war, the food industry has remained one of the leaders in the recovery of production. According to the State Statistics Service of Ukraine, the food industry reduced production in 2022 in response to the war and reduced demand. At the same time, it began to recover rapidly in 2023 and continued to grow significantly in the first quarter of 2024. The industry produces essential products that are in demand even during the war.
Read Sectoral Analysis: Food industry by The Institute for Economic Research and Policy Consulting