Ukraine has updated the rules for providing grants to the agricultural sector, including support for the construction of vegetable and fruit storage facilities. The new conditions could significantly improve producers’ access to financing for modern storage infrastructure, which remains one of the most problematic links in Ukraine’s fresh produce market, reports EastFruit.
On 22 April 2026, the Cabinet of Ministers of Ukraine approved amendments to grant programmes for horticulture, berry production, viticulture, greenhouse farming, and the construction of vegetable and fruit storage facilities. According to the Ministry of Economy, Environment and Agriculture of Ukraine, the changes are intended to increase transparency in the use of funds and bring grant programmes closer to EU rules under the Ukraine Facility.
The key change for the fresh produce sector is the reduction of the minimum storage capacity requirement. At the start of the programme, grant support was focused on the construction of new vegetable and fruit storage facilities with a capacity of at least 3,000 tonnes. Under the updated rules, the minimum threshold has been reduced to 500 tonnes of simultaneous storage capacity.
This means that the programme could become more accessible not only to large agricultural holdings and infrastructure operators, but also to medium-sized producers of vegetables, fruits and berries, who previously could not apply for support because the minimum capacity requirement was too high.
Under the updated rules, grants will be provided exclusively for the construction of new vegetable and fruit storage facilities on land plots. The maximum amount of support depends on the capacity of the facility: up to UAH 4 million for storage facilities from 500 tonnes, up to UAH 7 million from 1,500 tonnes, up to UAH 10 million from 3,000 tonnes, and up to UAH 20 million from 6,000 tonnes.
The new rules also include requirements for job creation. Storage facilities with a capacity of 500 tonnes or more must create at least six permanent jobs; those from 1,500 tonnes must create at least eight; facilities above 3,000 tonnes must create at least 12; and those above 6,000 tonnes must create at least 16. In addition, mandatory examination of the cost-estimate documentation and additional control over the cost of equipment and materials are envisaged.
For Ukraine’s fresh produce market, these changes are important not only as another instrument of state support. They address one of the key conditions for improving the sector’s competitiveness: without modern storage, producers remain dependent on seasonal price pressure, rapid sales immediately after harvest, and quality losses.
According to estimates by the Ministry of Agrarian Policy, Ukraine needs around 340,000 tonnes of additional vegetable storage capacity. Due to the war, the occupation of part of the country’s territory and the destruction of infrastructure, the shortage of vegetable storage capacity increased from 40% in 2021 to 60% in 2025. The ministry has also stated that, because of the lack of storage facilities, 35% of the vegetable harvest does not reach consumers.
“For Ukraine’s fresh produce sector, a storage facility is a tool for managing price, quality, exports and the producer’s negotiating position. If a farmer is forced to sell vegetables or fruit immediately after harvest, they effectively lose part of the value before the product even reaches the market. Modern storage makes it possible not only to reduce losses, but also to sell produce when the market is ready to pay a better price,” says Kateryna Zvierieva, Development Director of the Ukrainian Horticultural Association.
According to Zvierieva, lowering the minimum threshold to 500 tonnes could be an important signal for medium-sized farms, especially in segments such as traditional vegetable crops, apples, pears, frozen berries and other categories where high-quality storage has a direct impact on margins.
“Previously, the threshold of several thousand tonnes effectively excluded a significant share of producers for whom an individual or cooperative storage facility of 500–1,500 tonnes is a realistic business solution. These are exactly the types of facilities that could become the basis for local fresh produce clusters, producer cooperation and the development of supplies to retail, processing and export markets. But it is important that the grant does not turn into a formal construction of walls. The market needs not just warehouses, but technological facilities with refrigeration, ventilation, microclimate control, sorting and a clear sales strategy,” Zvierieva adds.
At the same time, the new rules introduce stricter requirements for project discipline. According to LIGA ZAKON, in order to participate in the programme, a facility must meet a number of criteria, including project documentation with a cost estimate, a permit or notification of the start of construction works, a comprehensive expert review report, as well as a microclimate system and refrigeration equipment with a controlled atmosphere.
This may complicate access to the programme for some small producers who do not have experience in preparing investment projects. However, it also increases the chances that state support will be directed towards truly technological facilities, rather than basic infrastructure with a limited effect on the market.
“The biggest risk of such programmes is financing facilities that do not change the economics of the producer. If a storage facility is built without a clear understanding of the crop, variety, sales window, energy costs, distribution channels and buyer requirements, it can become not an asset, but an additional financial burden. That is why grants for storage facilities should be viewed not as a construction programme, but as an investment in a new model of fresh produce business,” says Zvierieva.
The update of the grant rules also coincides with a broader trend: Ukraine’s fresh produce sector is gradually moving from a purely production-oriented logic to an infrastructure-oriented one. For many crops, the challenge is no longer only how to grow the harvest, but also how to store it, prepare it for sale, standardise it, sell it at the right moment and deliver it to buyers with minimal losses.
This is why the development of vegetable and fruit storage facilities could have a direct impact on seasonal price volatility, food security, the quality of produce on the domestic market and Ukraine’s export potential.
“Ukraine does not need fragmented support for individual farms, but a new map of fresh produce infrastructure. Storage facilities should be built where there is production, logistics, access to energy, labour and sales markets. In that case, state grants can create a multiplier effect: reduce losses, stabilise prices for consumers, strengthen farmers’ positions and build a foundation for processing and exports,” Zvierieva concludes.
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