When the Irish Tillage and Land Use Society visited Ukraine in 2008, a consultant called Dietrich Treis helped to set up visits and provide considerable background to the workings of that country. Dietrich visited Ireland recently and the Irish Farmers Journal took the opportunity to speak to him to compare notes about then and now in that war-afflicted country.

AD: How has Ukrainian farming been faring?

DT: Farming has been doing quite well over the past five years or so. The weak currency is helping and there has been a lot of investment.

Small farm units of under 1,000ha may be under pressure but there are very many big farm units now of 2,000ha to 20,000ha. Some of these are controlled by Ukrainians but many are driven by foreign investment. Some are even up to 300,000ha.

There has been visible investment in technology and modern equipment. However, uncertainty is preventing investment in fixed structures such as stores and sheds.

Fragmentation is an issue for some farms but others have most of their land in big blocks that are relatively close.

Has this improved the quality of farming?

There is no doubt but that the quality of farming has improved greatly in the past decade. There is now very little land that is not farmed or poorly farmed. When ITLUS visited in 2008, we were expecting a record grain crop of at least 50mt. The expectation now is for 70mt. And this is based on improved management rather than increased area. Farm profit is being invested in expansion and productivity.

The increased use of inputs has been a feature of the improved productivity. There is now no scarcity of inputs like seeds, fertiliser or chemicals provided they are planned for well in advance.

Has increased grain production resulted in expansion in the livestock sector?

Unfortunately not. In the past, there was substantial livestock production but numbers were culled following the demise of the Soviet Union. At that time, Russia was the major market but recent conflict has killed that option. There is just nowhere to sell products as the quality of many things would not be good enough to send to the EU.

Small-scale agriculture is still prevalent in small villages in the countryside in the form of the cow and the pig but this is decreasing. Many of the people who did this are now much older and the youth are working elsewhere. Still, it is a primary objective to produce as much small-scale food as is possible – a necessity of the ongoing economic crisis.

Was recovery helped by government assistance?

The government did not provide any form of direct assistance to the development of agriculture. And the feeling is that this was not desirable. However, the government helped to reform different control measures to decrease the levels of inspection and certification requirements. This led to all kinds of corruption in the past.

Can land be bought and sold yet?

Not yet. The opening of the land market is a stated requirement of the IMF but the country is not yet ready to do this. The land is now privately owned but while people cannot buy it, they can buy the right to use it. It is estimated that about 25% of the land ownership has not yet been processed. The restrictions on currency export led to increased investments in agriculture and property and were introduced in response to the economic crisis to prevent money leaving Ukraine.

What about the general economy and infrastructure?

While one can easily see the investment in agriculture, there has been relatively little investment by the state in its transport infrastructure for road and rail. There has certainly been capacity improvement in ports but the majority of this is from private funds. The domestic grain requirement is static at around 23mt, so the balance of production has to be exported.

The general economy remains depressed. The economy is heavily influenced by agriculture, construction and the steel industry. The war is certainly not helping and while there is money in war, it does not transfer to the general economy. This is affecting the construction sector and this, in turn, is affecting steel requirement.

Have the past few years been good for the machinery trade

Machinery dealers are happy. Sales are good and it has been easy to sell. The general economic uncertainty means that farmers are investing more easily in machinery that is mobile rather than fixed assets like buildings. Technically, machinery is viewed as a liquid and mobile asset as it can be driven out of the country for sale when money cannot be taken out.

In general, the international machine brands dominate in the crop establishment and harvest segment with big units. But there are still a large number of 80hp to 90hp tractors imported from Belarus and these tend to be mainly used for spreading and spraying.

What about access to finance?

This remains a problem that has found different solutions. Inflation continues to run at 20% to 25% so this sets its own challenges. However, it is improving. Access to credit for those who have access to euro- or dollar-based funds costs 10% to 12% per annum in interest. However, for those who can only access funds from local banks, the interest rates run at 25% to 30%, but these are declining. So credit is an issue, particularly for smaller farms.

For these reasons, farmers tend to prefer using suppliers as their source of credit. This is possible but based on a 30% payment up front with the remainder post-harvest.

Is Ukraine still totally dependent on Russia for its energy?

While the country was held to ransom some years ago due to its dependence on Russian gas, this has changed. While the gas was potentially valuable, the Russians still cannot eat it and more robust arrangements were put in place. Gas can also be shipped in from other destinations now. However, saving on energy costs has become a big public focus.

How much of an effect is the war having on daily life?

Most of the country is barely aware of the existence of the war. I live in Kiev and the war is 800km to the east. It is taking place mainly along the eastern border with Russia, north of the Sea of Azov. It is a confined area so far and has no bearing at all on the rest of the country except through its consequences on the general economy.

Listen to "How has agriculture in the Ukraine changed in the past decade?" on Spreaker.