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Svessar, Anders and Tuulik, Jonas (2004) Köpa jordbruksmark i Ukraina. Other thesis, SLU.

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Abstract

We have chosen to write our examination essay about Ukraine, we wanted to find out what kind of possibilities there is to run a farm there, and also find out what kind of problems that might arise. Ukraine is still heavily influenced by Russia and the legacy from the former Soviet Union. The agriculture today looks pretty much like it did before the collapse of the Soviet system. There are large governmental or cooperatively owned farms. The large farms have to deal with bad cash-liquidity and they often have trouble getting a hold of seed and artificial manure to their whole acreage. Therefore the harvests have plummeted after the Soviet Union collapse. The creation and development of modern farms are today practically laying still. It is only a handful of the agricultural businesses that today have the knowledge and the resources to develop. This essays main question is to find out if there might be any profit in buying farmland in Ukraine and to start a farm business there. We have gathered facts from interviews, reports, periodic writings and the Internet. By way of introduction are the countries geographical, historic and economic facts presented. Where also the climate and facts about farming in Ukraine is brought up. Further on is a description of the production conditions, crop growing potential and today's cultivated crops in the country. The production conditions in the country are among the worlds best. Today's land legislation in Ukraine is not very favourable for foreign investors. You are not able to buy soil out right, only if you are a Ukrainian citizen. The only possibility to farm land there is to take on lease. The labour in Ukraine is often qualified and well educated, but the wage situation is low. The tax legislation for businesses in Ukraine is very tricky and bureaucratic. But the tax legislation for farm-businesses in Ukraine is very favourable. The financing is the hardest part in starting and running a business in Ukraine. The interest is very high. Some of the interest is to be returned from the government, but this works very seldomely. The conclusion that has been drawn is that buying land in Ukraine is, if not impossible very difficult. But there is a possibility to take land on lease, but nor that is uncomplicated. If you succeed despite all the obstacles there are to start a farm business in Ukraine, then the possibilities are rather good to be successful!

Item Type: Thesis (Other)
Keywords: jordbruk, ukraina
Subject (faculty): Faculty of Landscape Planning, Horticulture and Agricultural Science
Divisions: SLU > Faculty of Landscape Planning, Horticulture and Agricultural Science
Depositing User: Users 96 not found.
Date Deposited: 14 Dec 2004
Last Modified: 18 Aug 2015 09:31
URI: http://ex-epsilon.slu.se/id/eprint/250

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