THE State Statistics Service of Ukraine reports that the volume of agricultural production in the country enjoyed an estimated growth of 17.5 percent of the period of 2011. The highest growth was documented in the north eastern Ukraine (Kharkiv, Poltava, and Symy regions).
Interestingly, both agricultural firms and households experienced production growth – 23.8 and 12.3 percent, respectively. In 2011 each region of Ukraine boosted agricultural production while in 2010 overall agricultural production in the country dropped by 1.5 percent.
On December 31, 2011, the Minister of Agrarian Policy and Food of Ukraine Mykola Prysyazhnyuk stated that over the year Ukraine increased its agricultural products export potential by 35 percent.
“This year showed growth of export figures for agricultural products shipped to the EU,” noted the Minister in his interview with Channel 5. He explained this development by the improved quality of the produced goods.
Ukraine has been gaining a stronger position on world’s agricultural market over the recent years. In 2011 Ukraine cropped the record amount of grain in twenty years (since declaring independence).
The unprecedented harvest – over 55 million tons of grain – as well as the removal of the export taxes and quotas contributed to export boost in 2011. This resulted in Ukraine becoming one of the world’s top three grain exporters. The country is also ranks number one in barley exports globally. Moreover, this year Ukraine became the third corn supplier in the world, surpassing Brazil and being the second runner-up to the USA and Argentina.
Given Ukraine’s rich grain production in 2011, in August that year the country initiated the creation of the world’s grain reserve under the auspices of the United Nations. Ukraine aimed to form a grain reserve of 10 to 12 million tons, preserve it and make grain interventions on the market. This would allow for more efficient price regulation on the world grain market.
Traditionally, Ukraine claims its position as one of the leading agricultural countries in the world. The country possesses 30 percent of world’s black soil – the most favorable soil for agriculture. This allows for a certain commercial advantage. Accordingly, agricultural exports brought ten billion dollars to the Ukrainian budget in 2011.