Ukraine’s potato market has significant potential; however, its development is constrained by the lack of an effective seed production system and the dominance of a raw commodity model. This was stated by Ukrainian Agri Council (UAC) Board Member Mykola Hordiichuk, Director of “Agrico Ukraine,” during a lecture for students at Uman National University.

According to him, despite substantial production volumes, professional potato farming in Ukraine remains limited, while the market is characterized by high competition and low value added.

“In Ukraine, potatoes are traditionally perceived as a simple and inexpensive product that is widely available. This creates intense competition and constant downward pressure on prices. In such conditions, a producer can easily be replaced by another supplier. That is why it is important not just to grow potatoes, but to create additional value for the consumer. Without this, remaining competitive becomes increasingly difficult,” Hordiichuk noted.

Around 200 potato varieties are registered in Ukraine, but only about 20% are of domestic breeding. At the same time, the key issue is not the lack of varieties, but the shortage of high-quality seed material.

“Ukraine has strong varieties and skilled breeders, but seed production is effectively absent. If a producer approaches the Institute of Potato Research of the National Academy of Agrarian Sciences and wants to purchase, for example, 20 tons of seed potatoes, they may receive only a few tons. This is insufficient even for basic production. As a result, Ukrainian breeding does not scale and fails to take its proper place in the market,” emphasized the Director of “Agrico Ukraine.”

Another constraint for the sector is the inability to export Ukrainian potatoes to EU countries due to non-compliance with phytosanitary requirements. At the same time, according to Hordiichuk, even under current conditions, potato production can be economically viable.

“This crop requires significant investment and is one of the most capital-intensive in the agricultural sector. However, with proper organization of production, it can be profitable. It is important to understand the economics of the process and work not only with yields but also with the market. Even with moderate margins, potatoes can provide stable financial returns,” the expert said.

One of the key directions for sector development is the creation of added value and a shift in the approach to the product. In particular, segmenting potatoes by culinary use allows producers to better meet consumer needs and build stable demand.

“We need to start from the consumer’s needs and understand that people are not buying just a product, but a result. A consumer chooses not simply potatoes, but a dish they plan to cook. That is why it is important to explain the purpose of the product and how to use it. This approach allows producers to move away from price competition and create their own market niche,” Hordiichuk shared.

According to the expert, further development of the potato sector in Ukraine depends on investments in seed production, the implementation of effective business models, and a shift toward higher value-added production.