Ukrainian agrarian production is not in despite, but due to negative factors is competitive in the world. This opinion was expressed by Pavel Koval, General Director of the Ukrainian Agrarian Confederation (UAC), Infoindustria reports.
According to him, even with the current level of productivity of basic resources and technical efficiency, our farmers are very competitive in most external agricultural markets. The reason for this is mainly three factors, two of which are negative.
First, the lack of a land market. Due to this factor in Ukraine, rental payments for land are inadequate and there is a high productivity of agricultural production. At the same time, this factor is playing a positive role in competitiveness.
Secondly, there are inadequate wages in the agrarian sector.
Koval says that, for example, in Germany, a farmer will not cut production costs, which are much higher there than in Ukraine, to the detriment of yield. In our country, agrarians can not finance them at this level. But, even with 50% of the harvest, due to weather conditions, domestic farmers can be competitive in the world.
The third and only positive factor that allows Ukrainian agricultural producers to be competitive in the world agricultural markets is scale. According to Koval, today we have a growing number of enterprises that can be classified as medium, and this is a positive fact.
Analyzing the activities of agricultural enterprises for a two-year period, analysts of the UAC came to the conclusion that Ukrainian agrarian enterprises are enlarging, that is, their number is decreasing, but the land bank is increasing.
Proceeding from this, an interesting trend is traced: the efficiency of small enterprises decreases, enterprises with a land bank up to 10 thousand hectares produce almost 70% of GDP, and agricultural holdings produce up to 22-25% of GDP.
As a solution to the pressing problems of the industry Koval offers not to grow monopolists at the state level, but to care about the development of competition, rather than corruption.