According to an Interfax-Ukraine report, the Institute of Agrarian Economics jointly with the Ukrainian Association of Potato Producers have proposed a state-funded program for the development of processing potato growing for 2021-2025, which provides, in particular, for the construction of potato storage facilities with 30% funding from the state.
According to a press release of the association, the implementation of the program will allow building 35 potato storage facilities in Ukraine with a total storage capacity of 158,600 tonnes.
“The average cost of building such a storage facility is UAH 10-12 million (US$360-430,000). If we consider that a loan for such construction costs 27% per annum, it becomes clear why small and medium-sized industrial potato producers cannot afford such costs,” the association said.
According to the association, the number of industrial potato farms in Ukraine is reduced annually by 10-13% due to unprofitability and the need for high investment. Thus, according to the association, if in 2017 some 1,296 farms were engaged in potato production for processing, the number decreased to 1,114 in 2018.