Emerging Markets / September 13, 2018

Agribusiness and Land Use in Eastern Europe

Ukraine is a large country located in Eastern Europe and a former member of the Soviet Union. The Ukraine has a total territory of 603.550 square kilometers, which is almost the size of Texas. Geographically, the country is dominated by fertile steppe plains and plateaus with some mountains along the west and south. Ukraine also has 2.782 kilometers of coastline along the Black Sea and the Sea of Azov, including along the country’s southern Crimea Peninsula. Moreover, the country’s climate is seasonal and temperate continental for the most part, with a Mediterranean-style weather along its southern coasts.

Agribusiness and Land Use in Eastern Europe

Currently, Ukraine has a total population of little over 44 million citizens with an average age of 41 years. Likewise, about 69% of the Ukrainian population lives in an urban setting, notably the capital Kiev with its 3 million inhabitants. In economic terms, the country has a Gross Domestic Product (GDP) of US$369 billion (PPP), which is divided into approximately 14% agriculture, 28% manufacturing, and 58% services. Simultaneously, the Ukraine has experienced economic growth upwards of 2.0% during the last two years, after several years of severe recession. Moreover, it is estimated that the agricultural industry employs 6% of the national labor force, while manufacturing employs 27% and services employ another 67%. Furthermore, in Ukraine, the agriculture industry utilizes 71% of the national territory, while another 17% is forested.

In terms of trade, Ukraine is the fifty-third largest export economy in the world. During 2016, the country imported US$37.8 billion worth of goods and exported US$35.1 billion, resulting in a trade deficit of US$2.8 billion. Moreover, the Ukraine’s main export, representing 9.8% or US$3.4 billion of the country’s total in 2016, were seed oils. Similarly, the country’s main import that same year, representing 8.7% or US$3.3 billion of all international purchases, was refined petroleum. Meanwhile, Ukraine’s main trading partners are Russia, China, Germany, Poland, Belarus, and Turkey.

Unfortunately, in the Ukraine, some 1.5 million people suffer from undernourishment. In recent years, the average per capita protein intake of animal origin amongst the Ukrainian population has been 42 grams daily. Simultaneously, land distribution and productivity in the country has evolved throughout the last several decades. Back in 1992, permanent pastures and meadows in the Ukraine covered almost 7.5 million hectares, while arable land covered 33.4 million hectares and permanent crops accounted for 1.1 million hectares. More recently, in 2015, permanent pastures and meadows had increased to account for 7.8 million hectares, while arable land represented 32.5 million hectares and permanent crops covered approximately 893.000 hectares. Lastly, in 1992, the cereals market in Ukraine utilized 12.5 million hectares of land and yielded some 35.5 million metric tons annually. Meanwhile, in 2016, the country devoted 14 million hectares of land to cereals production and yielded almost 65.2 million metric tons.

(Read more about International Cattle, Sheep & Goat Trade)