Maria Didukh / Mar 2025
Image:Shutterstock
For almost three years now, Ukraine has been steadfastly resisting the full-scale war with Russia. Over this time, we’ve faced numerous challenges requiring much effort. However, a strategic direction remains unchanged - Ukraine has chosen its EU path.
Since 2024, the EU integration process has become irreversible after Ukraine was granted candidate status and the official commencement of accession negotiations. In 2025, Ukraine is due to face far more intensive negotiations with its European counterparts. The process will determine the speed and intensity of Ukraine’s EU integration across core sectors.
Among the largest integration areas is agriculture, heavily bound by the obligations to be fulfilled by Ukraine. Agriculture, Ukraine’s key economic sector, is under tremendous pressure, given the prejudices and myths shared among European consumers. Due to the synergy of the accumulated factors, we are forced to present solid arguments and ruin the myths.
All these prejudices do not stand up to the simplest fact check. While the myth about the cheap Ukrainian agro products was doubtful, it finally lost its credibility after the outbreak of the full-scale war.
The competitiveness of Ukrainian grain is gradually slowing not only because of the war but also due to the market aspects of cost: rising land rents, higher wages due to labour shortages, and increasing costs of production materials.
To make matters worse, the domestic agro sector is prone to shellings and hostilities - Russia has been targeting agricultural facilities and port export infrastructure, with more than 30 attacks in the past six months. Military risks, discounting export deals and increasing the cost of logistics make transportation cost of the Ukrainian grain twice as high as the transportation cost of the Russian grain, in high demand on global markets.
Therefore, there is no threat of cheap Ukrainian agro products entering European markets. Simply put, there are no cheap Ukrainian agro products. Meanwhile, the national food safety control system shows high adaptability to new challenges. The government also helps to ensure electricity supplies for food processing plants, critical for the country's food security, and ensures that exports meet high food safety standards.
Moreover, there are ungrounded insinuations about the quality of the Ukrainian products. European statistics do not confirm quality concerns: 2023 data show the same number of notifications in the EU RASFF alert system for Ukraine as for other EU member states with well-developed agricultural sectors, Belgium, France and Germany. These claims concern only non-critical packaging issues.
Those who fear an influx of Ukrainian goods into the EU should understand that there is no trade revolution taking place, while Ukraine-EU cooperation has lasted for decades. Despite the longstanding presence of made-in-Ukraine products in the European market, some countries debate the risks of “the Ukrainian expansion.” In 2023, the artificially heated propaganda about uncontrolled grain supplies led to the imposition of temporary export restrictions by the neighbouring countries. Most of the bans were politically motivated without reasonable economic justification.
We understand and respect the concerns of European farmers and believe that Ukraine and the EU should develop new trade rules to ensure equal conditions for all parties, mitigate risks and maximize benefits. However, these rules should be symmetrical and fair for everyone.
As for the thesis that Ukraine needs subsidies that would come as extra costs to be paid by the current member states, Ukrainian farmers, who survive on a shoestring state support, cannot beg for more. During Ukraine’s EU integration, its agro sector will likely undergo a transitional period with limited subsidies, the same path Poland, Romania, and Bulgaria underwent. Conversely, we may offer a new cooperation model focused on competitiveness and innovation.
Ukraine is one of the world’s largest producers of grains and oilseeds, exporting more than half of its crops. Ukraine can help the EU solidify its food security, reduce its dependence on food imports from third countries, and contribute to the resilience of all regional economic systems.
For decades, Ukrainian agro products have stabilized global markets by ensuring food accessibility for millions of people.
According to the UN, more than 820 million people are starving, and climate instability is becoming increasinglye noticeable in the EU's agricultural regions. Against this background, the Ukrainian agro capacity enables the EU to balance major risks like inflation.
Furthermore, Ukraine can offer an agro sector development model free of burdening dependence on subsidies, with a strategic focus on innovation, efficiency, and environmental sustainability. Ukrainian agricultural businesses are among the top 5 most technologically advanced in Europe. Owing to high-tech implementation, they can strengthen the EU's competitiveness.
In turn, Ukraine’s government, parliament, specialized associations, and other stakeholders are working in synergy to promptly process all EU recommendations and implement the acquis. We believe that this work will benefit everyone by resulting in Ukraine’s fair, rapid and comprehensive European integration.
