Agriculture in both the EU and Ukraine involves not only small-scale farmers but also large industrial supply chains. Even before the widespread war, Ukraine steadily increased its presence in EU markets, with Ukrainian agrarians demonstrating attractiveness for the European market in the 2022/23 period.
Taras Kachka, Deputy Minister of Economy — Trade Representative of Ukraine, shared his perspective. "There are several dimensions to consider in assessing today's situation. We've had access to EU markets under the Free Trade Agreement since 2014, forming complex supply chains, especially in the agrarian sector. Ukrainian producers supplied vegetables, apple concentrate, tomato paste, and more. Ukrainian producers occupied certain niches without squeezing out Polish, German, or French farmers from their markets, but rather expanding production within the EU," Kachka explained.
He outlined two factors causing apprehension among European farmers. Firstly, Ukrainian agrarians lacked subsidies, surviving solely on efficiency. "Efficiency is what people involved in agriculture fear the most. Ukrainian farmers could survive only by focusing on efficiency due to the absence of subsidies," Kachka noted.
Secondly, Ukraine's aspiration to join the EU drives its food safety and technology policies to align with European standards, ensuring Ukrainian products are not alien to the market but compliant. "When an efficient and large partner with market access emerges, fears arise about the fate of small Polish farmers. However, no one intends to push such farmers out of the market. Ukraine shares and supports EU policies, viewing the agrarian sector as more than just business but a built system with farmers living in villages," Kachka elucidated.
Source: agroportal.ua