The Greenhouse Sector of Ukraine

© Assoication „Ukrainian Agribusiness Club“
© Ministry of Foreign Affairs of the Kingdom of the Netherlands

UA Ternopil Molokija Feb 2018
Beeld: NL embassy in UA

Particular focus of the study was on inputs of  greenhouse production. In order to evaluate the
demand for inputs and the competition among input suppliers, the study involved field research and in-depth interviews with representatives of the largest greenhouse companies, producers and importers of carcasses, glass and plastic materials, lighting, heating and ventilation equipment, fertilizers and plant protection products. In total, 19 expert interviews
were made.
This report is structured as follows.

First, the study provides an overview of the Ukrainain greenhouse sector whereby UCAB addresses the production structure by crops and type of ownership, describes main distribution channels for greenhouse products, and analyzes the inflows of foreign direct investments in the greenhouse sector.
Second, markets of the most spread greenhouse products in Ukraine (tomatoes, cucumbers, cabbages and salads, dill and green onion as well as flowers) are analyzed. The information disclosed in this part includes production figures, price dynamics and external trade. Here, the prospects for the development of greenhouse production in Ukraine are also addressed.
Third, the markets of inputs of greenhouse  production such as construction materials and
interior equipment for glass greenhouses and plastic tunnels, fertilizers, plant protection agents, planting materials and seeds are analyzed. Because official statistics do not contain records that are specifically dedicated to greenhouse inputs, UCAB inquired experts of the greenhouse sector about production and external trade figures and asked them to delineate prospects for the development of specific input markets.
Fourth, the study addresses the issue of logistics in the greenhouse sector. Based on some secondary data and expert interviews, UCAB provides information on availability and construction of storage facilities, sorting and grading equipment, packaging and quality assurance in the greenhouse supply chain.
Fifth, current legal framework for doing business in the greenhouse sector is described. Apart from key legislative requirements that are in force at the moment, the aspects such as taxation, budget support programs, land market regulation, quality standardization, import regulation, and creation of free trade areas with the EU and CIS countries are reviewed.
Impact of these aspects on the greenhouse sector is addressed in detail.
Subsequently, SWOT-analysis of the Ukrainian greenhouse sector is conducted. Legislative,
production and logistics aspects that have to be considered by investors when entering the market are scrutinized. Regional opportunities for doing greenhouse business in Ukraine are also addressed.

The report ends up with the list of useful contacts, including greenhouse producers, governmental bodies, exhibitions, and conferences relevant for the sector.