Fatih Şahin Фатіх Шахін Ukraine, business and international experience — since 2004
Agriculture & Food

The fields: barter, debt, and then a world market

From barter, debt and abandoned fields to a top-five global exporter. The transformation was real, and it had specific causes.

Cattle Komargorod 2013 G1
Photo: George Chernilevsky · Public domain

In the late 1990s Ukrainian agriculture was in a condition that is now hard to picture: unpaid wages settled in grain, fields left unsown for lack of fuel, machinery cannibalised for parts and a harvest that fell well below what the same land had produced a decade earlier.

What turned it around

Private operators who consolidated leased land into units large enough to justify modern machinery. This is the change that did the most, and it happened commercially rather than by policy.

Access to inputs — hybrid seed, crop protection, imported fertiliser — through functioning distribution rather than state allocation.

Export infrastructure, in particular the private grain terminals, which lowered freight and made distant markets reachable.

And a currency that, after each devaluation, made Ukrainian grain very competitive in dollar terms.

What did not improve at the same pace

Storage, which still loses part of every harvest. Rural infrastructure and rural incomes. Livestock, which never recovered its earlier scale. And credit access for anyone smaller than a holding.

How to read the record honestly

It is a genuine success in tonnage and export earnings, and a partial one in rural development. Both statements are true, and reporting only the first is what makes people in villages sceptical of the reporting.

The next twenty years

Processing, storage, irrigation and the mid-size farm. All four are financing questions, and all four are now finally answerable because land can be owned and pledged.

Watching this transformation from beginning to end is one of the most concrete things twenty years has given me. No single reform brought it about: seed, machinery, ports and financing all moved the same way, and none alone would have been enough. The part that did not improve at the same pace is always the same — the village itself. The question of the next twenty years is not yield but how rural life recovers.

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