02/24/2010 Ukraine Land Investment’s Perfect Balance
Ukraine farmland with its “perfect balance of sunshine and rainfall is bursting with marketable products”. “Ukraine agricultural land stands to explode on to the world agricultural stage.”
– Ukraine farmland with its “perfect balance of sunshine and rainfall is bursting with marketable products”. “Ukraine agricultural land stands to explode on to the world agricultural stage.”
These quotes come from two very different organisations who have reached very similar conclusions about the huge potential for investment in Ukraine land. Both World Focus and Top Producer Frontier Study found that Ukraine agriculture has a more than promising future.
The World Focus report focuses on Kiev-Atlantic Ukraine Ltd, a huge agricultural company run by David Sweere, an American farmer who has already reaped considerable returns from Ukraine land. In the report, the narrator introduces the viewer to Ukraine land – “some of the best land in the world”, an affirmation backed up by images of rich, black soil and field after field of thriving crops.
US farmers touring Ukraine land with the Frontier Study were also impressed by the richness of the soil. Commenting “Oh baby, this is good stuff”, Tim Richter from north east Iowa, was clearly enthusiastic about the 6ft of black earth and total lack of rocks. His companion, Dennis Fujan was also very taken with the depth of the black soil and the flat terrain.
As part of its Soviet inheritance, Ukraine has excellent transport infrastructure (highways, railways and sea ports), an essential part of the logistics behind the farming business. This modern and well-functioning network means that products from Ukraine agricultural land can reach EU markets quickly and easily.
World Focus highlights how David Sweere has introduced modern agricultural methods on the Ukraine land where he has farming interests. When he arrived in Ukraine to start his agricultural enterprise, Sweere decided that he was going to do things “the way they’re done back home”. US agricultural techniques and machinery on farms leased and run by Sweere have dramatically increased production and yield. According to Sweere – for whom a good day means over US$1 million in receipts - if this agricultural model was adopted across Ukraine it could relieve hunger over much of the world.
Foreign interest in Ukraine land as a soft commodity investment vehicle increases every year. Leonid Kozachenko from the Ukraine Agrarian Federation says that investors from numerous countries such as China and Saudi Arabia are “lining up to buy Ukraine farmland”. Foreign investors are more than aware of the huge potential behind Ukraine agricultural land, although much of this is currently untapped. Mr Kozachenko claims that just 25% of Ukraine land is fulfilling its potential at the moment. “To utilise 100% of our potential,” he says, “we need one important thing – investment”.
Source: PR Log (Press Release) Oct, 2009
Agri Comment
This blog is, in effect, an advert for its writers, a company selling Ukrainian farmland. However, we have been aware for years that Ukraine has a huge quantity of quality farmland, much of which has been neglected. In the context of growing world population and purchasing power, the country could make a mint on using its land more efficiently and investors profit at the same time.
Quite a few farming entrepreneurs have entered the Ukrainian famring market in recent years, but there is still wide potential for investors of all types to participate.
Bear in mind, however, that investors can’t own Ukrainian land, only lease for a maximum of 49 years. And ensure honest and capable agents oversee the purchase/lease process. We can recommend www.uaproperty.com as a company long established on the Ukrainian market.
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