As the world’s fourth-largest exporter of grain and top exporter of sunflower oil, Ukraine’s agricultural sector is a major economic driver for the country, employing nearly a quarter of the workforce.
Through AgroInvest, Chemonics and USAID are targeting Ukraine’s agriculture industry to support a stable, market-oriented policy environment, stimulate access to finance, and facilitate the creation of market infrastructure for small- and medium-scale producers. This increased agricultural investment will boost a significant portion of Ukraine’s markets, leading to a more successful economic future.
Through an extensive series of networking initiatives and roundtables with key stakeholders, the project has assisted with formulating concepts and plans for development of wholesale and regional agriculture markets based on public-private partnerships in Crimea, Rivne, and Ivano-Frankivsk, as well as with more than 20 producer organizations interested in engaging with the project to improve sector competitiveness and market links.
Under the project, Chemonics is working with local stakeholders to reform agriculture policy to lift the moratorium on agricultural land sales, an obstacle that has prevented the formation of many land development projects. The project also promotes better access to agricultural financing, cooperative development, creates a more investment-friendly tax and subsidy regime, strengthens producer organizations, and assist in policy to reduce tariff and non-tariff barriers in compliance with World Trade Organization standards.
The project has established formal partnership arrangements with two credit unions associations to facilitate better access to finance for small- and medium-scale producers in the agriculture sector. Credit models have also been designed in conjunction with credit union associations that will ensure major project impact on lending to small- and medium-scale producers.