Land, Technology, People: Can Ukraine become Europe’s agri hub?

UAFP Events

The European Union is already reshaping the way its agricultural sector operates. The era of “subsidies for all” is coming to an end, giving way to a focus on efficient projects and reducing dependence on China and other external suppliers. For Ukraine, this shift presents an opportunity: we can move from being a competitor to becoming a strategic partner for the EU. But first, Ukraine must address its own challenges – a demographic crisis, labor shortages, and the need to establish transparent rules for investors. How can Ukraine integrate its agricultural sector into the European market while simultaneously revitalizing rural areas?

In the latest episode of our podcast, we speak with Olga Trofimtseva, Head of the Agricultural & Biodiversity Sector at UAFP, and Gérard de La Salle, CEO & Founder of Alfagro and Regional Manager of Elicit Plant Ukraine. The discussion is moderated by Roman Vybranovskyy, Co-founder of the Ukraine Facility Platform.

Вelow are several key takeaways from the conversation:

🔹 France is facing a wave of farmer retirements, while Ukraine is losing people due to war and migration. Ukraine’s top priority must be bringing back its own citizens and creating conditions for work in rural areas. At the same time, increasing labor productivity through technology is essential – and Ukraine has significant potential for growth in this field. External migration can only play a supplementary role.

🔹 Climate change is already reshaping EU agricultural production and the regional distribution of key crops. This opens a window for Ukraine to transition towards growing those crops that may no longer thrive in other EU countries. To succeed, Ukraine must start building partnerships now to adapt sustainable farming practices to its own conditions, particularly in southern regions with low rainfall.

🔹 Farms of 300–800 hectares, considered small by Ukrainian standards but medium or even large in the EU, can become the backbone of rural development. Their strength lies in their connection to local communities: these farmers work their own land, create jobs, and sustain local infrastructure. They are also the key segment for European development programs and credit instruments.

🔹 Ukrainians’ historic skepticism toward cooperatives is gradually fading. France offers a strong example through the CUMA model, where at least four farmers co-invest in equipment. This approach addresses resource constraints and builds a culture of collaboration. For small Ukrainian producers, it is a gateway to modern machinery, credit, and integration into formal supply chains.

🔹 Corruption and a weak judicial system remain the main deterrents for foreign investors. Without the rule of law, even major players are hesitant to invest in processing or infrastructure. Another critical challenge is the severe labor shortage, which complicates the launch of new production facilities. Financial resources exist, but Ukrainian farms often lack transparent accounting and structured projects that European banks can finance.

🔹 A long-term lease model appears to be the most balanced option for attracting capital in Ukraine. This approach is already proving effective in several EU countries, including Poland.

🔹 Ukrainian farmers are ahead of many European peers in precision farming and agri-tech solutions. Ukraine has the potential to become an exporter of agricultural technologies to the EU, while Europe can share its expertise in sustainable production and soil preservation.

🔹 Agriculture can also serve as a key driver for reintegrating veterans and developing women-led entrepreneurship in rural areas, contributing to both economic and social revitalization.

Watch the full episode on YouTube