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element for restaurateurs in 2023 was to hire and retain teams and maintain menu prices despite rising costs.
9.1.6 Agriculture sector news
Putin admits that Russia sets world records for grain export at expense of occupied territories, Ukrayinska Pravda reports on January 16. In 2023, Russia exported at least 4mn tonnes of grain from the occupied territories after the start of the full-scale invasion. Putin claims that in 2023, the Russian Federation only harvested roughly fourmn tonnes of grain in the areas it had taken over following its full-scale invasion. As a result, Russia updated its record for the gross grain harvest in 2022, harvesting a total of 157.676mn tonnes.
Since February 24, 2022, Ukraine has lost 19.3% of its cultivated area due to the war. The most serious problems for the agricultural sector are the mining of territories, the lack of water for irrigation due to the destruction of the Kakhovka dam, limited exports through Ukrainian ports, and the destruction of infrastructure and equipment.
The second stage of land reform has had the opposite of the intended effect: businesses are not buying but selling hectares. Beginning in January 2024, the Ukrainian land market is open to legal entities. Companies can now purchase up to 10,000 hectares of land officially. However, companies that already own many plots are selling them instead of buying them. Since the beginning of the year, businesses have sold 207 hectares of land. Currently, the State Land Cadaster tracks 281 Ukrainian companies, each owning land larger than 100 hectares. Agricultural company Svitanok owns the largest amount of land in Ukraine, with more than 5,000 hectares, followed by the Druzhkiv Mining Administration, which owns 3,300 hectares. The top three are completed by Zemletreid, with 3,100 hectares. From the top ten, only Zemletreid has sold more than 20 hectares since the market opened. Two companies, Dolyna and Ekor Garden STS, left the top ten landowners at the beginning of the year. These businesses have sold off their land bank and now own less than 100 hectares. At the end of 2023, they owned 388 and 120 hectares of land, respectively.
The capitalization of the land market increased by ₴115.1B last year.
Since the beginning of 2023, the average weighted price for agricultural land has increased by 10.4% to ₴38,500 per hectare ($1,015). It is noted that during the period of market operation, 1% of land was sold, of which 99.5% remained in use. According to the Ministry of Agrarian Policy, thanks to the possibility of renting communally owned agricultural land through Prozorro.Sales local budgets receive ₴355.2M of income annually. The circulation and use of agricultural land brings communities an average of 10-12% of their total budget. On January 1, 2024, a new stage of land reform began, where legal entities have received the right to purchase agricultural land. Buyers can only purchase private land plots with a total area of no more than 10,000 hectares. The ministry emphasizes that the second stage of land reform will increase the value of privately owned land and landowners' income.
But capitalization of agricultural holdings decreased by almost €2B.Agricultural holdings' capitalization decreased during the IV quarter of 2023 compared to the same period in 2022. According to experts, this is
89 UKRAINE Country Report February 2024 www.intellinews.com