The International Finance Corporation (IFC), a member of the World Bank Group, has announced two new major investments in the Ukrainian agricultural sector, worth a total of 42.5 million US dollars.
The IFC is providing a 30 million US dollar loan to Astarta, a leading agricultural producer, to help improve its environmental efficiency and strengthen its agricultural productivity and logistics as part of a broader effort to boost Ukraine’s agribusiness sector and spur economic development. It is also investing up to 12.5 million US dollars in Nyva Pereyaslavshchyny, a leading Ukrainian pork producer, to support its expansion and help create jobs, modernise Ukraine’s meat production sector, and boost sustainable agriculture.
The investments are part of IFC’s strategy to strengthen Ukraine’s agribusiness sector and increase the country’s export competitiveness. Ukraine is one of the world’s biggest agricultural exporters, accounting for about 10 per cent of global grain exports. Astarta supplies grain to Asia, North Africa, and the Middle East.
Meanwhile, pork production in Ukraine remains inefficient and highly fragmented, with many smaller producers lacking sufficient quality controls. The new project with Nyva Pereyaslavshchyny will help the country to play a more significant role in global food security.
“Agribusiness is a priority for IFC globally, and Ukraine is very important to our strategy in the sector,” said Stephanie von Friedeburg, IFC’s chief operating officer. “Our continued partnership with Nyva will help show other industry players the value and benefit of implementing improved processing practices and sustainability across their operations.”
“With its fertile land and favorable geography, Ukraine has the potential to become a global agribusiness leader and play a vital role in food security,” added Mrs von Friedeburg. “Working with partners like Astarta helps us catalyse private sector growth and innovation in the agribusiness sector and enhance inclusive growth.”
IFC has invested over 1 billion US dollars in Ukraine’s agribusiness sector to support projects across the value chain, boost innovation, and help producers enter new export markets. IFC’s advisory teams are also working with the government and the private sector to help streamline business regulations, boost access to finance for farmers, open new markets, modernise supply chains, and improve competitiveness through better standards and resource efficiency.