Chemical industry is one of the principal sectors of Ukraine’s economy. The multi-branch chemical sector of Ukraine includes chemical, petrochemical and pharmaceutical sub-sectors with over 1,600 enterprises and structural units.
In 2019 Ukrainian chemical industry output reached $2.8 billion with CAGR 8% in the past 4 years. At the same time Ukraine is heavily dependent on imports of chemical produce, including petrochemicals, pharmaceuticals, mineral fertilizers. In 2019, Ukraine imported $7.5 billion of chemical produce, which accounts for 12 percent share in the country’s import, showing strong demand from the domestic market.
Ukraine is an agricultural superpower. Each year Ukraine is among top countries in the world in terms of production and exports of cereals, sunflower oil, nuts and other agricultural produce.
Ukrainian agriculture, already enjoying substantial cost advantages due to attractive land rent prices, extremely fertile soil, competitive wages and logistics, still has plenty of headroom for productivity growth as the yields per hectare remain below Western benchmarks.
Lower yields in Ukraine imply underinvestment in Ukraine’s agricultural sector. First of all, it is connected with the use of fertilizers and plants protection tools. Ukrainian farmers use almost three times less mineral fertilizers than the world on average.
Ukraine already has a rapidly growing fertilizers market with imported produce accounting over 60% of total needs.
With potential increase in investment into the agricultural sector connected with the introduction of the land market in July 2021, there are huge opportunities for foreign companies to establish domestic production of mineral fertilizers in Ukraine.
Moreover, Ukraine’s government also set for privatization a number of state-owned enterprises involved in production of mineral fertilizers, including such behemoths as Odesa Portside Plant and Sumykhimprom. These objects are very attractive assets that can be obtained at a reasonable price.