Comprising more than 10 percent of gross domestic product and almost 30 percent of the nation’s exports, agriculture remains one of the most promising sectors. But further growth depends on access to affordable financing, which has become increasingly scarce for the capital-intensive sector, experts say.
Prices for agricultural products fell significantly year-on-year with wheat prices declining by around 16 percent and corn by 39 percent, according to a January study by Agrisurvey agency.
Meanwhile, borrowing on foreign markets got more expensive for publicly-traded Ukrainian agribusinesses, with the three major international credit rating agencies downgrading the nation’s sovereign credit rating further into junk bond territory. Local bank hryvnia loan rates are prohibitively high, reaching 19-23 percent.