The country has lost about one-fifth of its farmland in the eastern Donbas due to trench warfare along shifting fronts and the mutual creation of extensive minefields. There are now about a quarter fewer people working in agriculture, and its share of the gross national product has declined by several percentage points.
Before the Russian invasion in 2022, Ukraine supplied 50% of the grain for the UN World Food Programme, and agriculture contributed 10.9% to Ukraine's GDP and 17% of employment. Since then, agriculture’s share of GDP has fallen to 8.2%, and employment in the sector has decreased by 22%, resulting in 2.1 million workers in 2023.
The agricultural sector’s share within the national economy has risen over the two war years to 62% in 2023, compared to 41% in 2021. The exports mainly consist of grains and sunflower oil, with Ukraine globally responsible for 43% of sunflower oil exports, 19% of rapeseed, and 13% of corn.
Promotion
Nevertheless, a recent study on long-term economic prospects shows that Ukraine is increasingly able to export more of its agricultural products. At an international donor conference held in Berlin in June, emphasis was placed on the fact that it is not only a short-term survival issue but that maintaining "this international granary" is also vital for global food security in the long term.
To address this crisis, the World Bank has launched several initiatives to support the Ukrainian agricultural sector, providing farmers with access to affordable financing and subsidies. This project aims to mobilize approximately 1.5 billion dollars in working capital.
Furthermore, the Ukrainian government has initiated negotiations for an additional 700 million dollar loan from the World Bank. The sector urgently needs investments in processing capacities, modernization of infrastructure, logistics, and mine clearance to secure the future of agriculture in Ukraine.