Forecast: After the victory, investment processes in agro will quickly intensify
If the risks of investors caused by the war are significantly reduced or disappear completely, investment processes in agriculture will quickly become more active. After all, the additional benefits of agricultural producers from rising prices for products will exceed the impact of negative factors, which will accelerate the return on investment.
This opinion was expressed by Nikolai Kisil, Leading Researcher of the Department of Investment and Logistics of the NSC "Institute of Agrarian Economics".
This was reported by the press service of the institute, noting that, according to a preliminary forecast, the volume of attracting capital investments in agriculture in 2022, according to a realistic scenario, should amount to UAH 72 billion. However, additional risks for investors that have arisen after Russia unleashed a war against Ukraine force us to focus on pessimistic forecasts for capital investment in agriculture.
“Although compared to the food industry, it will retain its investment priority. In conditions of a particularly high level of risk for national agro-investors, it should be expected that in 2022 they in the territories controlled by Ukraine will direct their investment resources mainly to the simple reproduction of fixed capital, maintaining existing capacities and investing in working capital growth,” Mykola Kisil noted.