Enjoying the status of Europe’s breadbasket and expected to increase its grain exports to 75 million tons by 2027, Ukraine has enabled a conditional sale of circa 20 million ha of private farmlands, starting 1 July 2021.

Ukraine has long dominated in the global agri-food supplies, particularly in grain stocks and oilseeds, with leading international and large domestic corporates operating in the market. During quarters 1-3 in 2019, agricultural exports reached US$16 billion. The country increasingly focusses on production of organic foods, and its top consumers include world’s largest and developed markets.

The above and preceding dynamics has incentivised international investments facilitating the development of storage and logistics facilities and enabled access to additional financing, among others, from institutional creditors.

Starting 1 July 2021, 20 million ha of privately held farmlands with the world’s richest fertile black soil reserves will be available for sale subject to certain conditions. With much room remaining for expanding infrastructure and capital capacities, the transitional opening of the farmland market may well boost the sector and bring higher yields on your investments.

A series of M&As were noticeable in the sector lately.

Among others, Asia’s leading agribusiness group purchased a shareholding in Ukraine’s principal branded foods manufacturer. The world’s leading agriproduct supplier acquired Ukraine’s largest private grain carrier. A Middle East investment company purchased a majority stake in a large Ukrainian agriholding, whilst Korea’s largest trading company bought controlling interest in the Ukrainian agri storage and logistics facility at the country’s largest seaport from one of the most active domestic sunflower exporters securing 2.5 million ton of grain storage capacity per annum.

By expanding its activity in waste management, the country has also become an attractive destination for high-stake greenfield projects through joint ventures, with an involvement of private equity (PE) funds, including in the agri processing and feed production, as well as other sectors, too. The consistently new deals arising on the M&A radar allow to bring cutting-edge tech and expand the share in the global exports and domestic distribution of agriproducts with added value.