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The volume of capital investment in Ukraine's agricultural sector is the lowest compared to the EU

The volume of capital investment in Ukraine's agricultural sector is the lowest compared to the EU
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The volume of capital investment in Ukraine’s agricultural sector per hectare of agricultural land—approximately $100—is the lowest compared to the UK and EU countries.

This was reported in a comment to AgroPortal.ua by Oleksandr Zakharchuk, Head of the Department of Investment and Material-Technical Support at the National Scientific Center “Institute of Agrarian Economics” and Corresponding Member of the National Academy of Agrarian Sciences of Ukraine.

According to him, the dynamics of capital investment in the development of agriculture during wartime are quite unstable, and the overall volumes are insufficient for expanded growth. Over the past 10 years, there have been three (!) investment declines—in 2015, 2020, and 2022.

“In the best pre-war year, 2021, investments amounted to UAH 68 billion, or $2.5 billion. In 2023, investment in Ukraine’s agricultural sector reached UAH 63.8 billion, or $1.7 billion. That is, the decline in dollar terms was nearly one-third,” the expert adds.

He also notes that during Russia’s full-scale military invasion of Ukraine, the volume of capital investment has ranged from just $95–110 per hectare of agricultural land used by enterprises.

Such levels of investment are insufficient, since global practice considers that sustainable agricultural development is only ensured when capital investment exceeds $150 per hectare.

In Italy, capital investment in agriculture amounts to $930 per hectare; in Germany — $735; and in France — $498.

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