Ukrainian seed business: potential, appreciated by foreign investors

Ukrainian seed production: why it’s worth investing

Ukraine has established itself as one of the largest grain exporters and is now asserting itself as a global player in the seed market. This area is a separate business asset with high margins, lower price fluctuations, and a ready base for scaling. Modern production facilities and international companies are already operating here. And most importantly, the demand for quality seeds is growing.

Why is interest in Ukrainian seed production growing?

An undeniable argument for business is the stable growth of the segment. In 2023, exports of seeds produced in Ukraine increased 1.5 times, reaching $119.5 million compared to $77.2 million in 2022.

In 2024, 418 seed and planting material producers were registered in Ukraine, who declared the production of 500 thousand tons of seeds. Total seed production in Ukraine is estimated at $2.7 billion, of which about $1 billion is for conditioned seeds. According to the “Strategy for the Development of the Agro-Industrial Complex of Ukraine”, the export potential of the seed market may increase to $600 million in 2030.

Investing in Ukrainian seed production is profitable not only because of the growing market. There is already something here that costs millions and takes decades to create - a scientific school and professional staff. A hundred years ago, Ukraine began to develop high-yielding varieties and create research centers. Therefore, today an investor does not need to build everything from scratch - there are already laboratories, experts, and experience.

Another advantage is the natural conditions. Ukraine has a unique combination of climatic zones and soils. Here you can grow seeds for different types of European markets: from drought-resistant crops for Southern Europe to varieties adapted to the more humid climate of northern countries. This allows you to not only produce seeds, but also test them in conditions close to those in which they will be used.

Geographical proximity to the EU opens up additional opportunities for profitable cooperation. The distance to key markets is minimal, which simplifies logistics, reduces transportation costs and allows for a quick response to demand.

The cost of production in Ukraine is significantly lower than in most European countries. There is already a ready-made agricultural infrastructure - laboratories, production facilities, equipment. This allows you to quickly launch production without significant start-up costs. The state, interested in the development of the industry, offers flexible regulation, tax incentives and support for investors. And most importantly - the market is growing, and the demand for quality seeds is steadily increasing.

There is no way without quality seeds today

Ukraine and the EU are key trading partners, especially in matters of agricultural products. There are many points of contact, but it is worth dwelling on the figures for key agricultural products - these are grains and oilseeds. In 2024, Ukraine has a positive trade balance with the EU in grain trade with a surplus of $3,866.9 million. The amount of grain exports amounted to $3,917.9 million, while imports amounted to $51.0 million.

Therefore:

• 41.6% of Ukraine's grain exports fall on EU countries
• Corn is the main grain export of Ukraine to the EU ($2,497.7 million)
• Wheat exports - $1,284.4 million
• Ukraine's basic grain imports from the EU - corn and rice
• Exports of oilseeds from Ukraine to the EU reached $2,375.0 million. If we talk about imports, they amounted to $95.8 million. USD.

Current indicators:

• 70.8% - this share of Ukraine's oilseed exports goes to EU countries
• Rapeseed is the main export of Ukrainian oilseeds to the EU
• Exports of flaxseed have increased threefold compared to 2023
• Ukraine mainly imports rapeseed and sunflower seeds from the EU.

Therefore, expanding capacities and partnership in seeds will ensure even greater trade volumes and exchange of agricultural innovations between Ukraine and the EU.

Ukrainian seed production is evolving

The seed sector of Ukraine now resembles a startup that has already passed prototype testing and is ready to scale. Private investors find opportunities for stable profits here. The government considers seed production as a strategic industry. The scientific community receives a platform for practical application of its own developments. Agricultural farms strive to have high-quality seeds of domestic production. This is evidenced by specific facts and processes.

International companies

Today, such international giants as Bayer, KWS, Syngenta, Corteva, Maisadour, Remington Seeds are actively operating in the Ukrainian seed market. In particular, Corteva (USA), Maisadour (France) and Syngenta (Switzerland) have farm networks and seed processing facilities in Ukraine.

In 2019, the American company Remington Seeds entered the Ukrainian market by concluding a strategic agreement with the company MAIS to acquire a seed factory and agricultural operations in Ukraine. In March 2023, the German company KWS received permission to commission the second line of its seed factory in Kamianets-Podilskyi. The German concern Bayer announced an investment in a plant focused on the production of corn seeds in the Zhytomyr region. The investment amount is 60 million euros.

Legislative changes

The Ukrainian government and relevant institutions are actively working to improve legislation in the field of seed production and harmonize the regulatory framework with European standards. ​ In particular, the Law “On State Regulation of Plant Protection” updates the plant quarantine system and introduces a “plant passport” for better traceability of products. Amendments to the Law “On Seeds and Planting Material” simplified the procedures for recording labels and introduced a new procedure for marking and packaging seeds. The Resolution on registers in the field of plant production provides for the creation of an electronic system “E-Plant Production” to automate the registration of varieties - in order to strengthen the protection of intellectual property in the field of seed production and adapt the relevant legislation to European standards.

Recognition of equivalence of Ukrainian seeds

In April of this year, a very important event took place for the Ukrainian seed sector - the European Parliament approved the granting of equivalence to the EU system of certification of sunflower, rapeseed, beet and soybean seeds produced in Ukraine. Even earlier - in 2020 - the European Parliament adopted a resolution that opened the country to export Ukrainian grain seeds to European countries. This indicates that Ukraine meets high requirements for seed production and quality - the same as in the EU. Ukrainian companies can now sell a product with added value and will receive a prominent place in the EU production chain.

Professional community

Large industry associations, such as the Seed Association of Ukraine (NAU), which has been operating in Ukraine for 15 years, are an important sign of the development of the modern seed market in Ukraine. Membership in such organizations of powerful players, their joint work and the introduction of innovations is a signal that the market is developing. Ukraine has enormous potential in seed production and can offer Europe high-quality seeds that meet modern market requirements, in particular in such important crops as grain and oilseeds.

And finally. Seeds are the beginning of everything in the agricultural world. This is the future harvest, profit and food security. In turn, Ukraine offers not only a platform for investment, but also creates a unique ecosystem of partnership, where European opportunities are multiplied by Ukrainian potential. Maybe it's time to sow today to harvest tomorrow?

Read also: Insights into the Ukrainian seed industry during war