Cooperation with China in the agriculture sphere is a strategically invaluable experience for any modern country.
Since 1978, the PRC agro-industry has not ceased to increase the crop production capacity. Considering the yield is increasing every year, and the arable land proportion is reducing. Currently, only 10% of the China state territory is allotted for agricultural production, and about one fifth of the world’s population can be provided with annual grain harvest from this land.
Over the past few years, China has been held in the rank of the world’s largest cereal producers. And on a large scale the country is on the verge of complete independence from the crops import, such as rice, wheat, corn and potatoes.The level of China self-sufficiency with the above products is estimated to exceed 96% of the total demand in the domestic market. Across the globe, China produces more than a quarter of the entire grain harvest on the planet.
China’s share in global agro-production:
Rice – 27.9%
Potatoes – 25%
Corn – 21.1%
Wheat – 17.3%
Soybeans – 4%
Vegetables – 800 million tons
Fruits – 283 million tons
Sugar – 125 million tons
Meat – 83 million tons.
However, grain crops sales are constantly growing in the period from 2010 to 2018, and the share of China’s imports in the agricultural sector is amounted to 90% of trade with other countries at the end of 2017. All the reasons for the foreign agricultural products increased consumption are caused by the constant increase in the China population. Climate change is also an important factor. The land area suitable for planting has already decreased by 3 times in comparison with the figures in early 2000th.
Ukraine has entered the list of countries establishing firm pillars with China for the high-quality agricultural products supplement. In 2011, a joint declaration was signed between Ukraine and China on both establishment and development of a strategic partnership between two powers, and Ukrainian profits from agricultural exports to China increased from $ 20 million to $ 1.3 billion over the last decade.
A significant event for the Ukraine export agricultural industry was the statement by the PRC Ambassador, Du Wei, on the possibility of concluding a Ukrainian-Chinese Free Trade Agreement in 2017
The advantages of working with Ukraine are obvious for China, as both production conditions and organizing agriculture processes in two countries are strikingly different. Conditions for the plant and animal breeding implementation in Ukraine correspond to the needs of modern China.
Agriculture organizations on the territory of Ukraine contribute to both climatic and environmental region features, having a positive effect on the production productivity and subsequent pricing in the export market.
Advantages for Ukraine
Experience and technology
Both climate and intensification specifics of technical progress have led the PRC agricultural sectors to super-efficient production ways. Chinese technologies borrowing should influence the phenomena of extensive development minimization in both agrarian and livestock sectors of the Ukrainian economy sales market.
China’s consumer market is for certain the most attractive export cooperation for any great country.
Joining to long-term cooperation with China’s multi-million dollar market will invariably lead to both production capacity expansion and multiplication in the future.
All the results of the increased interest to the Ukraine agrarian market from China are particularly noticeable in recent years, when both states agreed on the need for economic convergence. According to the Export Strategy of Ukraine, China ranks second in the TOP-20 list of promising markets for the export of Ukrainian products.
Current Chinese investment projects in the Ukrainian agricultural sector:
Grain export crediting ($1.5 billion)
(China Ukreximbank, CCES of China)
Lending to irrigation and logistics ($1.5 billion)
(China Ukreximbank, CCES of China)
Agreement on investment cooperation in gardening ($515 million over the next 2 years)
(China Haisum Engineering)
Agrarian Exchange Project in Ukraine
(Jilin International Commodity Exchange (JICE))
It is important the agro-industrial sector to occupy the largest percentage of the turnover in the Ukraine export. Improving crop production and reaching a high level of agriculture in other branches will significantly contribute to improvements in national trade indicators. Having a good reputation in many countries, agricultural producers are able to achieve the elimination of crisis phenomena in the Ukrainian economy under their own steam.
If you are ready to contribute the new “economic miracle” implementation through the development of Ukraine agriculture, and also to receive the PRC support – do not delay a noble cause, but rather contact us via one of the phones listed on the website. We are happy to take part in your ideas discussion, providing all the necessary information or responsibly advising you in matters of doing business with China.