There will be no record harvests: Fitch predicts a reduction in cultivated land and yields in Ukraine
Kyiv, March 07 (PolitNavigator, Vasily Ablyazimov) – International rating agency Fitch predicts a reduction in cultivated land and a decrease in yields in Ukraine due to a lack of funds for spring field work. Today, approximately 11 billion UAH are missing for the sowing campaign, similar to last year.
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The agency states: “Underfunding of the current spring planting campaign could lead to a reduction in cultivated land and deterioration in yields due to insufficient fertilizer application and investment in agricultural machinery, and as a result, a decrease in yield in 2015-2016.”
Ukrainian farmers will be extremely negatively affected by the devaluation of the hryvnia, a sharp increase in the cost of fuel, as well as seeds and fertilizers, spare parts for agricultural equipment, etc. The agency notes that the investment climate in Ukraine has sharply deteriorated, which will lead to a restriction of lending to agricultural producers.
Small and medium-sized crop producers are projected to be hit the hardest due to difficult access to liquidity and the inability to fully plant acreage.
Large holdings will most likely be able to carry out the sowing campaign, but a decrease in yield is expected.
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