Ukrainian agriculture in the process of systemic changes

Abstract

Ukraine has great possibilities for developing agricultural production, which it owes largely to favorable natural conditions, including fertile, predominantly black, soils, and climate conducive to farming in most of its regions. At present, however, the Ukrainian economy and, especially, agriculture are in the period of emerging from a deep and protracted crisis connected with problems posed by the implementation of the process of systemic transformation and reconstruction of Ukraine's statehood. The level of agricultural production - especially of animal production, is still lower than it was before the start of systemic transformation. Systemic changes in agriculture have not produced the expected results. Huge transfers of arable land from collective to private farms have significantly lowered its productivity. The level of food consumption in Ukraine is very low, far lower than the consumption's rational norms. However, in recent years – especially in the years of bumper crops, Ukraine has become a large exporter of grain, oil plants and oil, which suggests that despite the continuing shortage of capital the country is slowly coming out of the deep crisis. In this context it is important to ask whether Ukrainian agriculture is able to achieve shortly a significant growth in production and to become a major exporter of food and agricultural products. An answer to this question is also important from the point of view of development possibilities of Polish agriculture.