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Wartime Agribusiness: Twice as Many Openings as Closures

From 2021 in Ukraine registered 8,644 new agricultural companies, despite the fact that during the same period 3,416 agricultural companies ceased their activities. This means that for every closed company there are approximately 2.5 new ones. The most active year was 2021, when, even before the full-scale invasion, 2,678 new agricultural enterprises appeared in the country. In 2022, the number of registrations was expected to decrease by 1,558 companies, but already from 2023 the sector began to recover its momentum: 1,697 new companies appeared in 2023, 1,842 in 2024, and another 869 in the first half of 2025. Total: 5,966 new agricultural companies since the start of full-scale war.

At the same time, the largest number of closures also occurred in 2021 — 1,070 companies. In 2022, 512 agricultural firms closed, in 2023 – 613, in 2024 – 685, and as of July 2025 – another 536. Even in the years with the highest number of liquidations, the sector showed a positive balance: there were significantly more new companies than those that ceased operations.

The largest number of new agricultural companies are opening in the Odesa region — 612 from 2021. Next comes Kyiv — 600, Lviv region — 597, Vinnytsia — 591, and Dnipropetrovsk — 535. At the same time, the dynamics are much lower in the border and frontline regions. During the entire period, only 40 agricultural enterprises were opened in Luhansk Oblast, 101 in Donetsk Oblast, and 147 in Zaporizhia Oblast. 120 new companies appeared in Chernivtsi Oblast, 171 in Zakarpattia Oblast. Proportionally, the number of closed companies is distributed similarly: the most closures were also in Odesa Oblast — 606, followed by Dnipropetrovsk — 225, Khmelnytskyi — 201, Kyiv — 199, Mykolaiv — 191. The fewest enterprises ceased operations in Luhansk Oblast — 21, Donetsk — 49, Ivano-Frankivsk — 49, and Kyiv — 55.

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Over five years, 1,738 agricultural companies changed their legal address and relocated to other regions. Of these, 346 companies moved specifically to the western regions of Ukraine. The largest number is in Lviv Oblast: 166 firms, that is, almost half of all relocated agribusinesses in the western direction. Rivne Oblast — 54 companies, Volyn Oblast — 39, Khmelnytskyi — 30, and Zakarpattia — 19 are also in demand. Such relocation dynamics indicate a shift in business activity to rear regions with relatively more stable conditions.

Despite the war, some of the new companies not only stayed on the market, but demonstrated a significant increase in income. Thus, in 2024, the Pharmzaat Ukraine company increased its revenue by 3.3 times to 770 million hryvnias. “Niva-plus” received 530 million hryvnias last year, which is one and a half times more than in 2023. The revenue of the company “Agropromtechnika” increased by 2.7 times – up to 392 million hryvnias. “Krasnopavlovsk KHP” declared 308 million hryvnias, which is a third more than the previous year. “Agrofirma Malinivska” earned 299 million hryvnias, almost three times more than a year earlier.

The agro-sector demonstrates a resilience unusual for a military economy. Despite declining registrations in the first year after the full-scale invasion began, the market adapted quickly. The geographic concentration of business has changed, new growth centers have appeared in the hinterland regions, while traditional agrarian regions continue to lose companies. But the main dynamic remains stable: despite the war, risks, relocation and closure of enterprises, the number of new agricultural companies consistently exceeds the number of those that disappear.

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