Ukraine, known in Soviet times as a «breadbasket», has lost much of its agricultural capacity in the early years of independence. However, understanding the need to efficiently use the potential of the agricultural sector is now on the agenda for researchers and policy-makers here.
The present crisis in the economy, with falling revenues of exporters in chemical and metallurgical products, is making agricultural exports an important source of foreign trade earnings. Yet Ukrainian specialization in agricultural goods with low added value is a rather negative factor. In fact, taking into consideration the popularity of safe and high quality food among consumers in developed countries, it is an opportunity to seize the niche that is the segment of organic agricultural products.
The restoration of agricultural potential of Ukraine should encompass rational intensification via innovation in agricultural production. Therefore, the role of government is crucial: pursuit of profit must not endanger the environment, nor must it cause the degradation of landscape and biodiversity in rural areas.
