Abstract
The article studies the potential and prospects of development of the agricultural sector of Ukraine, taking into account the conditions and consequences of the martial law. It is established that the war has caused a number of crisis phenomena in the Ukrainian economy, negatively affecting the state of the Ukrainian agricultural sector and its export capacity. In 2022, Ukrainian agricultural exports in dollar terms decreased by 16% compared to 2021, and by another 7% in 2023. The war has caused changes in the regional structure of Ukrainian exports. The reason for these changes was the blockade of Black Sea ports and the need to establish alternative shipment routes. Logistics costs have increased by an average of 5 times, while prices for agricultural products in the domestic market have fallen. In addition, the agricultural sector is significantly affected by labour shortages. In 2024, compared to 2021, the number of working-age people in Ukraine decreased by 40% due to extremely complex demographic processes. However, Ukraine's agricultural sector has significant potential for development due to: favourable natural and climatic conditions and fertile soils; favourable geographical location and proximity to major markets; availability of skilled labour and scientific and technical potential; and opportunities for innovation and digitalisation in agriculture. The main promising areas for developing the potential of Ukraine's agricultural sector: 1. Diversification of production – expanding the range of crops and products, including organic and high value-added products. 2. Implementation of innovations and digitalisation – application of the latest technologies, precision farming, and robotics to improve production efficiency. 3. Development of agricultural infrastructure - modernisation of elevators, warehouses, and logistics for storage and transportation of products. 4. Government support and regulation – preferential taxation, access to finance, investment incentives, and the fight against corruption. 5. Greening and sustainable development – implementation of environmentally friendly technologies, rational land use, environmental protection.
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