Agriculture

Yuriy Diachuk

UH Land & Agriculture Fund Partner
The war in Ukraine has starkly illustrated the vital importance of agriculture, land, and our heritage; without these foundations, we cannot envision a promising future. At United Heritage, we are dedicated to uncovering and harnessing the agricultural potential of Ukraine, Poland, and the broader region through innovative development projects that turn our aspirations into reality.

Intro

United Heritage is strategically positioned to capitalize on Ukraine's vast agricultural market, which is primed for consolidation and significant growth. With 41.4 million hectares of available land, we see a unique opportunity to acquire undervalued assets as new legislation opens purchasing options from January 1, 2024. Amid reduced competition due to the ongoing conflict, we are ready to act swiftly before prices align with those in neighboring Central and Eastern European countries, where they are expected to rise sharply in the coming years.

Beyond agricultural land, Ukraine's broader agribusiness sectors offer immense potential. As one of Europe’s and the world’s leading producers in key areas like grain, oilseeds, and poultry (notably chicken), Ukraine plays a critical role in global food supply chains. These sectors represent highly attractive investment opportunities.
Our approach leverages deep local expertise and long-standing relationships with major agricultural operators, allowing us to streamline land consolidation, support agribusiness projects, and improve operational efficiencies.

Led by Yuriy Diachuk, an expert with unparalleled experience in Ukraine’s agricultural sector, we implement innovative strategies to maximize returns across key areas—from production to processing and logistics. Our focus on reliable, high-potential projects ensures both immediate dividends and substantial long-term capital gains.

Discover how we turn agricultural challenges into lucrative opportunities across Ukraine, Poland, and the region. For more insights, read on!

Investment Thesis

Ukraine and Poland together form a dynamic agricultural region with immense potential to impact global food markets. Ukraine is already one of the world’s leading exporters of agricultural commodities, producing over 100 million tons annually. Despite recent challenges, the country has managed to sustain stable export volumes and is now on track to surpass pre-war levels. With strategic improvements, such as raising yields to EU standards, Ukraine could further increase production by an additional 10–15 million tons per year, solidifying its position as a key global player.

Poland complements this strength with its well-established agricultural sector and growing emphasis on food processing and organic production. Recognized for its high-quality food brands that are valued globally, Poland has built a reputation as a reliable partner in premium food markets. Together, these two countries offer a powerful synergy that enhances their capacity to meet growing global food demand while delivering higher-value products.

A transformative opportunity lies in the recent liberalization of Ukraine’s land market. For the first time, 75 million acres of highly fertile land are open for sale, creating a limited-time window for strategic investments before prices align with EU standards. Cross-border projects with Poland, leveraging its expertise and infrastructure, could play a pivotal role in maximizing the value of this new era in Ukraine’s agricultural sector. The processing of agricultural products is a key area of growth for both countries. As Ukraine progresses toward EU accession, there is a pressing need to develop advanced food processing industries. Poland, already experienced in this field, offers a model of success that can inspire cross-border collaborations.
This shared focus on processing and value-added production, including organic food, will not only strengthen supply chains but also unlock higher margins for both nations. Moreover, the rising global demand for organic and sustainably produced food presents a unique opportunity to position the region as a leader in premium food exports.
Innovative cross-border projects are already underway, further enhancing the collaboration between the two countries. These initiatives aim to integrate logistics, processing, and export capabilities, enabling the seamless flow of goods and ideas across borders. By combining Ukraine’s vast production capacity with Poland’s established food industry expertise, these projects are creating new avenues for growth in agricultural innovation and sustainability.

One of the most exciting untapped opportunities in Ukraine lies in agricultural residues. With 12 million tons of unused residues annually, Ukraine has the potential to generate up to 22 billion cubic meters of biogas or biomethane. This complements Poland’s growing focus on renewable energy, creating synergies that could redefine the region’s energy landscape and contribute to European energy security.

In the global arena, the combined strength of Ukraine and Poland’s agricultural and food sectors offers an unparalleled competitive advantage. From staple crops to premium processed goods and sustainable energy solutions, the region is poised to set new standards in food production, processing, and export. By leveraging their shared strengths, both nations are not only meeting current demands but also shaping the future of global food systems.

Investment Approach

Our investment approach in agriculture is driven by a deep understanding of local markets, particularly in Ukraine, where our team has established strong relationships with major agricultural operators. This proximity allows us to tap into the vast potential of the Ukrainian agricultural landscape, leveraging direct access to large landowners and operators who are looking to consolidate their holdings in response to changing market dynamics. By providing tailored financial solutions, we facilitate land acquisition and consolidation for these operators, offering them a streamlined process that avoids the complexities of dealing with numerous small landowners. Our role as an independent financial partner ensures that operators can maintain existing lease agreements and retain buyback rights, all while benefiting from our expertise in navigating local agricultural markets.

Beyond land acquisition, our strategy extends to multiple facets of the agricultural value chain, including processing, production, and export. Ukraine is a global leader in the production of grains, sunflower oil, and poultry, with a commanding presence in the global market. 

This diverse engagement enables us to participate in various segments of the agricultural sector, positioning us to generate robust returns as we capitalize on the country’s strength in these key areas.
Moreover, we are actively exploring innovative agricultural technologies and practices to enhance productivity, sustainability, and value creation within the industry.
While Ukraine remains a focal point of our strategy, we are equally committed to identifying and supporting agricultural projects in Poland that align with our investment profile. Poland, with its strong agricultural sector and well-developed infrastructure, offers significant opportunities for expansion and innovation. The Polish market is ripe for agricultural ventures that aim to improve efficiency, enhance sustainability, and increase competitiveness, particularly in areas such as organic farming, agri-tech, and food processing. By tapping into these opportunities in both Poland and Ukraine, we aim to create synergies that strengthen our portfolio and deliver superior value to our investors.

Together, our approach to agricultural investment in both Poland and Ukraine is designed to leverage local expertise, capitalize on the inherent strengths of each market, and position us at the forefront of the evolving agricultural landscape. By focusing on strategic land acquisition, value-added processing, and the integration of innovative technologies, we are well-placed to drive sustainable growth and long-term returns in this essential sector.

Pipeline

Targeting High-Potential Agricultural Investments
Our pipeline for capital deployment reflects a strategic selection of opportunities in the Ukrainian agricultural sector. We aim to engage with established operators seeking to optimize their land assets while contributing to Ukraine's agricultural renaissance. Key projects include:
A leading crop producer and exporter in the Black Sea region, with 510,000 hectares of land under management, offering 8,374 hectares for sale annually at an average price of $2,500 per hectare, translating to an investment opportunity of $21 million.
A Western Ukrainian agricultural company with international investments, managing 300,000 hectares and offering 4,926 hectares for sale annually, presenting a $12 million investment potential.
The agricultural division of a major Ukrainian retailer, with 220,000 hectares and 3,612 hectares available for sale, resulting in an investment of $9 million.
A top-10 agricultural company listed on the Warsaw Stock Exchange, managing 200,000 hectares with 3,284 hectares for sale, offering an $8 million investment opportunity.
A producer of grain and oilseeds, with 200,000 hectares and 3,284 hectares for sale at an investment of $8 million.
An agricultural holding with land bank and logistics capabilities, overseeing 125,000 hectares with 2,053 hectares available for $5 million.
A vertically-integrated agro-industrial holding managing 110,000 hectares, with 1,806 hectares up for sale at an investment of $5 million.
Various smaller operators across Ukraine, including those specializing in livestock and grain production, offering a cumulative total of 1,565,000 hectares with an anticipated 40,000 hectares available annually, amounting to a collective investment opportunity of $100 million.

Land as a Class Asset: A Comparative Advantage
The comparison of agricultural land with other asset classes further underscores its unique investment appeal. Unlike real estate or stocks, agricultural land retains value and does not face the same risks of total loss due to disasters. It has limited supply, an indefinite lifespan, and potential for both capital gains and steady dividend flows, providing an attractive investment proposition in a volatile market.
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Poland
United Heritage sp. z o.o.
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