Number of participants in agriculture in Ukraine down by almost third, there is strong potential for return to pre-war production – IAE

KYIV. Oct 27 (Interfax-Ukraine) – The number of operating enterprises in the agriculture, forestry and fisheries industries in 2022 decreased by 31.4%, to 35,600 compared to 51,800 a year earlier, reported the press service of the Institute of Agrarian Economics (IAE).

“For the industry, this is the largest decline since 2012, while simultaneously exceeding the corresponding figure for the economy as a whole (down 29.6%),” the report says.

At the same time, the IAE is confident that although agriculture has lost a significant number of enterprises, it retains sufficiently powerful entrepreneurial potential to restore pre-war production volumes.

According to the institute, the number of enterprises engaged in crop production decreased in the first year of the war by 31.2% and amounted to 28,000 compared to 40,600 a year earlier, while companies growing perennial crops decreased by 31.1%, to 1,100 (1,600 in 2021).

The same trend affected enterprises involved in livestock farming – their number decreased by 28.9%, to 2,600 (3,700).

An even greater decline affected the mixed agriculture segment – a drop of 37.7%, to 616 companies (988). The number of enterprises engaged in auxiliary activities in agriculture and post-harvest activities decreased by a third (down 32.8%), to 1,500 (2,300).

Among the sub-sectors, the largest drop – “minus” 73.3% – was recorded among rice growing enterprises – only eight participants remained, as well as among companies growing hemp crops – by 52.4% (ten enterprises), growing vegetables and melons, root crops and tubers – by 38.3%, growing grapes – by 37.4%.

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