Cabinet approves agriculture development strategy till 2020

With the aim of determining future priorities for implementing the state’s agrarian policy, Ukraine’s Cabinet of Ministers has approved the Agriculture Development Strategy 2020. The document outlines measures aimed to maximize the potential of agricultural sector, which, in turn, will give a powerful impetus to investment, technological and social growth in the country, the Information-analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The agro-industrial complex is an important sector of Ukrainian economy. To date, it represents almost 1/3 of all fixed assets, employs a quarter of population, produces more than 20% of Gross Domestic Product, and accounts for 7% of retail turnover.

Government analysts say the Agriculture Development Strategy (ADS) is the first comprehensive plan of its type in Ukrainian history. The document is based on provisions of Program of economic reform 2010–2014 «Prosperous Society, Competitive Economy, Efficient Reform».

ADS emphasizes food security, increasing investment attractiveness and the introducing innovative technology to improve quality and competitiveness.

The first set of objectives is creation of conditions for better investment, access to foreign markets, and bringing the level of domestic markets in line with European models. 

Adopting the Law «On safety and quality of food products» and introducing a Hazard Analysis and Critical Control Point (HACCP) system is a necessary first step. Another key issue of AIC development is ensuring the access of agrarians to cheap financing, leasing methods, and equipment. The strategy envisions launching the State Land Bank and increasing forward purchases.

The second set of objectives aims to create a comfortable investment climate and supportive socio-institutional environment in rural areas. It plans to facilitate cooperation between small and medium-sized producers in an increasingly organized agricultural market.

The third and most important factor in the Agriculture Development Strategy is development of efficient innovative structure of agro-industrial complex. For the agricultural sector this means upgrading technical infrastructure, introducing new technology at each management level and increasing labor productivity. (labor productivity in Ukraine is 4–5 times lower than in developed Western countries).