March 26, 2012
Ukraine Ministry of Agricultural Policy and Food (Minagroprod) has begun a scheme to create a large corn-soy belt that will enlarge land cultivation by five million hectares for corn and by 2-2.5 million hectares for soy.
This will allow the government to almost double the production of these crops and still internal demand.
"Minagroprod initiated a fundamental change in the structure of main crop production in the Ukraine, aiming to grow crops more in line with the climatic conditions of our country," said Nikolay Bezugly, deputy minister of Agricultural Policy and Food, at the recent Forum "Agribusiness in Ukraine", organised by the Adam Smith Institute.
Bezugly stated that the global development strategy of the Ukraine provides a major restructuring of agricultural production based on current climatic conditions. "Ukrainian science has developed the concept of a corn-soybean belt in the forest-steppe part of Ukraine based on the Corn Belt in the USA", - said Bezugly.
It is planned that the area set aside for corn could reach five million hectares. "And so the annual production of corn in the country will increase to 30 million tonnes," Bezugly said. The area for soy is planned to be about 2-2.5 million hectares. This will increase soy production to five million tonnes.
In 2011, the Ukraine produced about 17 million tonnes of corn. The farmers also collected about two million tonnes of soy. The total investment amount under this project according to preliminary expert estimations could reach up to US$75 million.