"Strengths and Bottlenecks of Supply Chains of the Potato Sector of Ukraine” the projects executed with support of the Dutch Government in Ukraine identifies critical challenges and growth opportunities, helping successfully integrate Ukraine’s agri-food sector into European markets.

Beeld: © Agrico Ukraine

It is executed by the Kyiv School of Economics, in partnership with the Ukrainian Association of Potato Producers (UAPP) and with the support of the Government of the Netherlands in the framework of the (PSD) private sector development program of RVO. Visit project page for more information

Project background

Potato is one of the most important crops for Ukrainian market, but despite of its popularity, the potato sector is one of the least researched in Ukraine.

This year Ukrainian Association of Potato Producers (UAPP)  finally managed to correct the official statistics of Ukraine about non-existent 20 million tons of potatoes produced in Ukraine, but still the statistics of Ukrainian potato sector have more questions than answers.

State Support of the sector

2025 is the last year when the State Program for the Development of Industrial Potato Growing 2020-2025 is in effect, however the program was suspended almost at the very beginning due to a full-scale war. At the same time prolongation of the program for the dynamic potato market without update of its development goals and strategies would not right.

The development of the industry is the main task of specialized associations, the development of potato growing in Ukraine is the main task of the Ukrainian Association of Potato Producers (UAPP).

Beeld: © Olha Samoilichenko

When I just started as Executive director of UAPP, I realized that the current program for the development of industrial potato growing was ending and a new one needed to be written, it became clear to me that there were no reliable, unbiased data that would justify the requirements of the next program. Yes, there is a vision of producers, there is their huge experience in Ukrainian potato growing throughout crisis and war. Ukrainian Ministry of Economy (its agrarian part) is ready for the state support program of potato sector, but there is no vision of the current state of affairs of potato sector, barriers that prevent its further development and main focus areas.  Such benchmarks should be set objectively, but expertly. This is where my search began, and whoever seeks always finds, - Olha Samoilichenko, executive director of the UAPP.

Dutch support of potato sector

Cooperation in potato sector is one of the priority for the Office of the Agricultural Counsellor in Ukraine. Not only due to the Dutch technologies and planting materials that the widely used in Ukraine. Potato sector is essential for the Ukrainian food security and economic stability. Throughout the years with the support of the Dutch Government a number of initiatives have been realized with the focus on the development of Ukrainian professional potato production See more here.

PSD Project “Analysis of Strengths and Bottlenecks of Supply Chains of the Potato Sector of Ukraine” will identify critical challenges and growth opportunities, helping successfully integrate Ukraine’s agri-food sector into European markets. It is executed by the Kyiv School of Economics (KSE), in partnership with the Ukrainian Association of Potato Producers (UAPP) and with the support of the Government of the Netherlands in the framework of the (PSD) private sector development program of RVO.

The initiative is part of the broader KSE analytical framework focusing on assessments of the impact of EU integration on the different agrosector in Ukraine. Through in-depth analysis of the potato sector, the project will help identify key challenges and opportunities for development, and contribute to the successful integration of the sector into the EU market.

What is unique about this project?

The Ukrainian potato sector has not been analyzed so thoroughly for more than 10 years. The specifics of potato growing in Ukraine require an understanding of the essence of production, a deep understanding of processes, open sources data usually does not reflect the real situation. Statistic information for the last 20 years unfortunately caused confusion and perception of Ukraine as top producer of potato which is not true.

Therefore, the current project is based on constant verification of the research results with the participants of UAPP:  

  • Seed companies (Ukrainian and foreign breeders);
  • Local and foreign chemical companies (suppliers of fertilizers, crop protection, pesticides, growth stimulants, inhibitors, etc.)
  • Suppliers of the field machinery;
  • Suppliers of post-harvesting progressing and storing equipment;
  • Potato growers;
  • Potato processors.

Why is this project so important?

The result of this project will be an objective analysis of the potato sector. It will present the prospects and bottlenecks of the sector to the Ukrainian government and international partners, potential local and foreign investors. As a result, the industry will have the opportunity to develop. The real picture will significantly help the potato sector become more predictable, produce sufficient amount of quality potatoes for the domestic market, and prevent unpredictable price fluctuations and imports.

Early results of the project:

So, the project has been successfully launched and we already have the following results:

  • KSE analysts conducted preliminary interviews with UAPP participants, examined all available data and formed preliminary hypotheses about what exactly are the bottlenecks of the Ukrainian potato sector.
  • 5 thematic focus groups were formed and five meetings were held, the purpose of which was to collect the opinions, experience and practical observations of UAPP participants regarding factors that significantly affect the development of the potato sector of Ukraine.

All the results of the research conducted by the KSE team on each topic of the focus group were presented by Maria Bogonos, Head of the Food and Land Use Research Center (KSE Agrocenter).

The result of each focus group was the verification or clarification of hypotheses, the identification of real practical barriers, and the collection of expert information on how these barriers affect the processes and mechanisms of the supply chains of the potato sector in Ukraine.

The focus group meetings had great interest from the UAPP participants, the number participating companies was constantly increasing from meeting to meeting. The topics were so relevant and important that the discussion lasted more than two hours each.

Thus, some hypotheses after discussions have changed and will be further revised by the team of KSE-Agrocenter.  However the approach when analytical data is verified by industry representatives is proved to be very efficient.  

Potato is a niche crop, or as it is called in the network of chemical companies - a special crop. And although the vast majority of Ukrainians grow or grew potatoes, professional industrial production of quality potatoes is a complex and very technological process, each element of which requires maximum attention.

Work on the project is ongoing. KSE Agrocenter is updating the materials of the draft report. The first edition will be available soon for verification by the sector representatives.  

Read the report in Ukrainian  on the webiste of  Ukrainian Association of Potato Producers (UAPP)

Beeld: © https://potatoclub.com.ua/

Focus groups meetings