In the wake of ongoing conflict and the pressures of globalisation, the agricultural sector in Ukraine is facing a pivotal moment. A recent study led by Vyacheslav Shebanin from Mykolaiv National Agrarian University sheds light on the pressing need to embrace a circular economy model within the industry. This shift isn’t just about sustainability; it’s about survival and revitalisation.
The research underscores the stark contrast between traditional economic practices and the circular economy, which promotes a closed-loop system where waste is minimized and resources are reused. “The circular economy offers a pathway not only to boost productivity but also to enhance resilience against external shocks,” Shebanin noted, emphasizing the model’s potential to reinvigorate an industry grappling with significant challenges.
The backdrop of this study is particularly sobering. Ukraine’s agricultural landscape has been marred by war, leading to a noticeable decline in both cultivated land and livestock. The destruction of infrastructure and the occupation of key regions have severely hampered production capabilities, resulting in a dramatic drop in agricultural exports. As Shebanin points out, “The profitability of firms in this sector has taken a hit, and many are struggling to keep their heads above water.”
One of the key takeaways from the research is the urgent need for innovation and investment, especially from the state. With many Ukrainian agricultural firms lacking the financial muscle to adopt new technologies that underpin the circular economy, the call for strategic support is loud and clear. “If we want to turn the tide, we need to prioritize investments that facilitate this transition,” Shebanin argues. This isn’t just about adopting new practices; it’s about creating a robust framework that can withstand future uncertainties.
The European Commission’s strategy for the Common Agricultural Policy, set for 2023-2027, further reinforces the importance of this transition. Member states, including Ukraine, are expected to implement circular economy principles in their agricultural practices, which could open the door to new markets and enhance competitiveness. The potential for improved economic efficiency is significant, offering a glimmer of hope for an industry that is crucial to Ukraine’s GDP and foreign exchange earnings.
As the agricultural sector navigates these turbulent waters, the insights from Shebanin’s study, published in ‘Наукові горизонти’ (Scientific Horizons), could serve as a roadmap for future developments. The integration of circular economy principles not only promises to bolster productivity but also fosters a more sustainable and resilient agricultural sector. This is a story of adaptation and innovation, one that could reshape the future of farming in Ukraine and beyond.