KIEV, UKRAINE — Agriculture provides 14% of GDP and remains the number one export industry in Ukraine, the Minister of Agrarian Policy and Food of Ukraine, Alex Pavlenko, said on Aug. 28 at a meeting with Ukraine’s cabinet of ministers.
Exports of agricultural products provide a net inflow of $30 million daily. The foreign trade balance for agricultural products in the first six months of the year improved by $250 million.
Grain exports in the second quarter of 2015 are expected to generate revenue of $4 billion, which is up 12% compared to last year.
Ukraine has systematically diversified its exports to key countries. In particular, exports to the U.S. increased by 36%, Asia 10% and to the E.U. by 6%. Even though there has been an increase to certain countries, Ukraine has experienced a 2% decrease of agricultural exports.
“Deliveries to CIS (Commonwealth of Independent States) countries have decreased by 31%,” Pavlenko said.
Pavlenko stressed that Ukraine intends to make an impact on global food security and access new foreign markets.
Canada and Ukraine have begun to create an agreement of free trade which opens new opportunities for the Ukrainian agricultural sector.
Ukraine and China do not have an active trade relationship. For the past seven months, agricultural exports to Egypt amounted to $889 million, more than twice the amount this time last year of $407 million.
“It is opening new markets that will lead to plans of foreign exchange earnings,” Pavlenko said.