Experts of Ukrainian Agribusiness Club note that in 2014 a tendency to reduction of the land bank controlled by large agricultural companies continued, due to economic and geopolitical problems in Ukraine. Last year the share of holdings in total agricultural land use decreased to 0,25 million hectares - to 26,7%. Land bank of holdings amounted to 5,60 million hectares in total.

The information on changes in the land bank of holdings in 2014, as well as rating of agricultural companies by volume of gross crop production (wheat, maize, barley, sunflower, soybean, rapeseed, sugar beet) and livestock (dairy cattle, pigs, poultry) was analyzed in the annual analytical study "The largest agriholdings of Ukraine 2015", which will be presented on September 16 at the VI International Large Farm Management Conference.

The study refers to the fact that the total volume of gross output by top 50 companies (89,7% of total production of holdings) amounted to 49,87 billion USD. Currently, the three largest agricultural companies provide the output of gross agricultural production in volume that exceeds the output by all farmers around Ukraine.

In 2014 agricultural holdings provided almost fifth part of the gross production of crop products in Ukraine – 19,6% or USD 34,9 billion. Compared to 2013, despite the loss of assets (Crimea, ATO), the volume of gross crop production increased by 3,6%.

A key direction for agricultural holdings, that occupies 58,2% in the structure of sown areas, is growing crops. In 2014 the top 10 largest companies collected 10,83 million tons of grain - 58% of production in agriholdings or 17% of total production in Ukraine. The average grain yield in agriholdings amounted to 64,5 c/ha (+ 9.0% to 2013).

Holding structures also play a significant role in the food security of Ukraine in the segment of animal products, as in a number of positions (poultry, eggs) they are the leading commodity producers. By results of 2014 the gross livestock production in agriholdings reached USD 20,69 billion (28,1% of total production by holdings) or nearly 62% of all livestock products produced by agricultural enterprises.

In general, according to research data, holdings are significantly ahead of independent enterprises in terms of volumes of production of export-oriented goods: eggs, poultry meat, maize, soybean, rapeseed, wheat, barley. For these positions, according to the president of Ukrainian Agribusiness Club Alex Lissitsa, holdings are far ahead in technology, implementation of innovations and staff qualification. "Taking into account the performance indicators, the difference between agricultural holdings and medium-sized agricultural companies is huge, and it will be quite difficult to reduce the gap in the next five years”- he says.

Association "Ukrainian Agribusiness Club" 

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

feschenko@ucab.ua 

Anna Feshchenko

www.ucab.ua

The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.