Thursday, October 9, 2008

Ukraine Can Become Bread-Baskett of Europe Again

Ukraine really needs to develop its agriculture. It's going to be one of the vehicles for Ukraine's rise as an economic power. The main reasons are:

1. The food prices are going up to astronomical levels worldwide.

2. The yields on farming land in Ukraine are still extremely small, compared with the rest of Western Europe. Even Russia is now ahead on how much it produces out of the same piece of land.

Ukraine has rich land, which can potentially yield 4-5 times of its current harvest yields, due to lack of consolidation, lack of foreign investments (foreigners are still not allowed to own land in Ukraine!), the depleted land - thanks to brutal Soviet heritage (brutal to the land just as much as to the people), and to the lack of farming consulting talent, as well as technology.

The most important thing for Ukraine to do right now would be to open up its land for foreign ownership, which would allow foreign capital to come in and develop Ukraine's potentially very rich land.

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