Association Agreement with the EU will promote the investments flows into the agriculture of Ukraine
Taking into account the global climate change, Ukrainian agricultural sector will be more attractive for the investors. This was announced today by the Minister of Agrarian Policy and Food Mykola Prysyazhnyukat during the meeting of the Board of domestic and foreign investors. Besides, after the signing of the Association Agreement with the EU the investments are expected to increase. In particular, the Minister said that they eexpected investment flows into agricultural market development, rehabilitation of irrigation systems, biofuels, agricultural machinery, animal husbandry and food industry.
«Due to the global climate change, we predict that the investments into the agricultural sector of Ukraine will be very attractive to investors. In particular, Ukraine has a considerable potential to increase yields to the level of 90% of the yield in the developed countries. This will provide additional 30 million tons of grain,» said the Minister.
Mykola Prysyazhnyuk also said that after the signing of the Association Agreement with the EU the investments should significantly increase.
«Increased investment into agriculture is a real step to improve the competitiveness of the industry, productivity growth and address social problems. Thus, taking into account the European integration processes Ukrainian investment potential of the agricultural sector has to play one of the key functions», said the Minister.
According to the Minister, the most profitable sectors for the investors will the development of the agricultural market, the restoration of irrigation systems, biofuels, agricultural machinery, animal husbandry and food industry.
«For example, the rehabilitation of irrigation systems in the South will grain production up to 10 million tons per year. Bioethanol production will significantly reduce both grain price dependence and energy dependence of Ukraine. The investments into agricultural machinery, animal husbandry and food industry will be hold within the Economic Development Program for 2013-2014,» said the Minister.
The Minister stressed that the investment projects for the development of small forms of farming in the rural areas and their cooperation are of the highest priority. In general, the State should provide favourable policy to attract investors. «We understand that the global agri-food market is vary depending on any decision taken at the state level. Therefore, the Government should correct internal policy and make conditions clear and predictable for the agricultural business», concluded the Minister.