The war accelerated Ukraine’s transition from a commodity-based to a food-based economy

Ukraine is gradually moving from a commodity-based model of the economy to a food-based one.

Taras Vysotskyi, the First Deputy Minister of Agrarian Policy and Food of Ukraine, said this on the air of the national marathon, reports the Ministry of Agrarian Policy.

“The force majeure factor of the war accelerated our transformation. Looking at the results of the agricultural sector during the 7 months of the war, we see that the point of no return to the commodity model has already been passed. What does this confirm? First of all, everyone understood that agricultural producers, farmers who concentrate on one or two grain oil crops, are very risky. And there should definitely be differentiation,” he noted.

Thus, according to him, the export of dairy products is increasing. According to the results of August, it is a record figure for the last two years. Similar growth is expected in the future.

In addition, the livestock of industrial pig farming and poultry farming is increasing, added Taras Vysotskyi. This is explained primarily by the decrease in the price of fodder, and the trend towards the development of animal husbandry will continue in the future.

Investments are also directed to bioenergy, the First Deputy Minister emphasized.

“Recently, auctions for the privatization of distilleries were held. The final offered price at the auctions became 3-4 times higher than the starting price. And the distillery is primarily bioethanol, biofuel. The sector realized that it is much more profitable to produce alternative sources of energy – bioethanol, biogas, biomethane, than to simply sell raw materials and then buy natural gas at exorbitant prices for drying corn,” he emphasized.