Article

Received 19.02.2025

Revised 14.05.2025

Accepted 24.06.2025

Retrieved from Vol. 29, No. 2, 2025

Pages 107 -117

Klymenko, M. (2025). Barriers to investment in dairy farming in Ukraine: How to overcome them. Ukrainian Black Sea Region Agrarian Science, 29(2), 107-117. https://doi.org/10.56407/bs.agrarian/2.2025.107

Barriers to investment in dairy farming in Ukraine: How to overcome them

Mykhailo Klymenko

The relevance of this study was determined by the necessity to improve the investment attractiveness of dairy farming in Ukraine amid global challenges and internal economic difficulties. The aim of the paper was to identify the main barriers hindering investments in the sector, particularly in the context of modernisation and increasing production efficiency. The article investigates key investment areas in dairy farming, including capital, technological, and innovative contributions. International experience was analysed: in European Union countries, up to 25% of farmers’ income is formed through subsidies, while in the United States of America over 40% of farms use government loans at interest rates of 1.125-2.5% per annum. It was established that in Ukraine during 2018-2024, the number of cows decreased by 37.4%, and milk production volume declined by 28.3%. Major investment barriers were identified: high loan interest rates (20-25% per annum), policy instability, worn-out infrastructure, and the consequences of war. The paper substantiates the feasibility of comprehensive state support, attraction of international financing, and modernisation as key directions for the sector’s recovery. Based on the research results, a set of measures to stimulate investments in dairy farming is proposed, including development of state support programmes, simplification of regulatory procedures, engagement of international financial institutions, modernisation of logistics infrastructure, and support for cooperation among small and medium producers. The findings may be utilised by government authorities, investors, and agricultural enterprises for effective policy formulation, investment decision-making, and strategic planning of dairy farming development

state regulation; technological modernisation; capital investment; economic resilience; war risks
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