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Ukraine Land Strikes Oil

As well as producing its second highest ever grain yields this year, Ukraine land is also reaping record volumes of vegetable oil. 2009 has seen the harvest of almost 9 million tonnes of oilseeds, which maintains Ukraine land as an ideal vehicle for soft commodity investment.

Ukraine land is working hard to keep up with the increasing demand for food and fuels worldwide. Wheat and corn from Ukraine fields are feeding countries like Ethiopia and Georgia, although in spite of the huge harvests, BBC 2 Newsnight recently reported that "as fast as they can get the wheat out of the fields, it's being gobbled up by a ravenous international market." The increased demand for biofuels as an alternative to fossil fuels has led to a rise in the amount of Ukraine land under oilseeds.

So far this year, almost 9 million tonnes of oilseeds have been harvested. Sunflower seeds are by far the largest sector with 6.1 million tonnes of rapeseed (1.9 million tonnes) in second place. The excellent harvest of sunflower seeds ensures that Ukraine remains part of the world's sunflower triangle along with Argentina and Russia. Sunflower seed oil from Ukraine land also ranks among the best quality in the world.

Experts attribute the 2008/09 Marketing Year's record volumes of vegetable oil production (over 2.6 million tonnes) to three main factors: up-to-date farming techniques, better technology and equipment, and improved logistics. This proves that the on-going bid to improve Ukraine farming methods and machinery is producing results. Yields (and therefore returns from investment in Ukraine land) are expected to continue to rise as more upgrades are introduced into Ukraine land.

Ever-more conscious of its vital role in feeding the growing world population, Ukraine is implementing international standards in its agriculture. Joining the World Trade Organisation last year has led to the successful adaption of tariffs and taxes to international regulations. This year, Ukraine has implemented Hazard Analysis and Critical Control Points (HACCP) throughout oilseed production companies. HACCP ensures rigorous controls at all stages of the oilseed chain from field to table and guarantees that international standards are met.

After years of neglect after the dissolution of the USSR, Ukraine land is at last beginning to fulfill its potential. This year's bumper crops show that yields are on a steady upward trend. As better techniques are used on farms and the logistics for transportation of crops improve, it seems highly likely that yields from Ukraine agricultural land will at least double over the next five years.

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