The situation of agriculture in the Ukraine
For almost a year, the exceptional situation of Russian-occupied territories with all the consequences for the economy and society in the remaining parts of the country there is in parts of Ukraine. Unstable conditions in the occupied territories be caused by military actions at different levels of intensity stages. Currently, the military conflicts in the two southeastern provinces are again highly virulent.
In these areas, the land use to a minimum has been gone back because on the one hand too dangerous is to purchase the land and on the other hand, no one knows who will be on the upcoming harvest have . Processing plants are often destroyed for agricultural raw materials. Self catering in the countryside and Russian food imports for the urban centres are the two alternatives to ensure the supply. Improvisation and corruption have become survival of the individual. The number of refugees from the occupied areas is specified in the amount of one million.
The Ukrainian economy is close to collapse. 11 billion $ debt run up in the next few months. The State has a maximum of 7.5 billion $. The is the purchasing power of Ukrainian currency from $1 fell to 8 hryvnas to 21. Bank interest rates are at 30% and above.
The Ukrainian agriculture needs a substantial portion of his introduce resources from abroad. These include seed, fertilizer, pesticides, fuels, machine spare parts and similar new machines from abroad are almost no longer to pay.
There are however significant differences to the processing plants for fruit markets construction companies in the Ukraine . The grain farms are unimaginably large and include a few oligarchs, have partly across ten to hundred thousand hectares. With the help of barter deals sog can partially be to inflation, in which you pay the resources usage with the sale of the crop.
Aligned granivores are common on the supply in the form of home economies at a low level of production. Thus, the supply in the countryside is largely secured. The processing sector and the related industry is in economic trouble, because can get hard again come the high operating costs in the sales process.
The Ukrainian grain harvest 2014 was weather far above average good with 63 million t. The upcoming harvest 2015 is estimated under the current conditions at just 40 million tonnes . Already missing the not ordered surfaces and the seed level is relatively weak estimated for 20% of the growing regions. A smaller harvest will entail corresponding consequences for grain export.
Ukrainian agriculture has contributed so far about 10% to the gross national product. The relative proportion should be but larger given the decline in the rest of the economy. Agricultural exports have been up to 30% of total exports. The sunflower and maize exports have contributed approximately 15% and canola exports with respectively 20%, wheat exports 5%.
Significant declines in the agricultural exports is expected for 2015. It is already decided, that may be for the rest of the marketing year only 2.1 million tonnes of cereals exported . That's less than one-third of the planned exports.
In conjunction with the Russian export restrictions the Black Sea region will play significantly weaker role for the global grain supply in the years 2015/16 one. The consequences for the price development will be significant due to the large amounts of error and the usual value of the Black Sea offer.
