FIELDS OF CHANGE: CHARTING THE PATH FOR UKRAINIAN AGRICULTURE
5th October 2023 saw a conference held in Brussels, Belgium under the banner ‘Charting the Path for Ukrainian Agriculture’ attended by the UK’s Chris Jackson (UKTAG – UK Technology for Agriculture & Genetics) and Rob Grinnall (UKECP – UK Export Certification Partnership) with the event co-funded and organised by UCAB (Ukrainian Agribusiness Club) and AGCO, a global company, serving as a link between the agricultural product and manufacturing value chains.
AGCO’s Richard Markwell addressing the meeting
Market Access is a key area with a focus on the livestock and germplasm required to assist Ukraine in its post-conflict rebuilding. Both representatives spoke to Nazar Bobitski, Director of the EU Office of UCAB, and brought up the enquiry for 30,000 live sheep that has been brought before the UK industry. Despite new certificates previously being negotiated for germplasm, the outbreak of war has stopped the attention required to pass the Export Health Certificates (EHCs) needed for live sheep and goats, cattle or bovine embryos. Comments Rob: “It would seem pertinent and sensible to prepare for the restocking that will be required. I also sense a market opportunity for the UK post-Brexit to agree mutually acceptable EHCs direct with Ukraine especially.”
Participants came from across the EU as well as outside to listen to the financial sector, political figures and agricultural industry who all had interest in the future of rebuilding Ukrainian agriculture. The morning sessions were dominated by banking sector all of whom touched upon the huge need for private and banking investment. Some USD 60 – 90 Billion is needed in the short term to support and begin the rebuild of the ag sector comprising of both small farming properties and vast agricultural holdings.
Of course, wheat/grain exports are the major commodity and whilst Ukraine has been a huge world producer, the amounts of grain produced, and the price paid, is extremely volatile. Without the ability to sell forward, the price achieved can be USD100 per tonne less than that on the world market. Farms have gone from making a profit to loss due to this huge price differential. With the Black Sea ports being almost closed, grain is being sent overland to eastern EU, but getting across the borders is time consuming and bureaucratic, with queues of 12 days not unusual.
The afternoon was given over to farming companies, who spoke of the promise of grants from the EU, with large sums available at least in theory, but those present did not know of any funding that had actually been reached. The Ukrainian representative to the EU spoke of how even with her place of knowledge and contact she could not navigate her applicants through the bureaucracy to the relevant people.
With the farmers and workers having left the east of Ukraine, it was difficult to achieve any real industry in that region at this moment, but they were hopeful that the push back would bring more land back into the sector.
Speakers were extremely friendly towards UK involvement and grateful for the UK support so far, but more is needed.
Only small mention was made on the loss of livestock due to the invasion, but repopulation is clearly required. According to the Ukraine’s Ministry of Agrarian Policy & Food, as of 22nd June 2022 the official estimated number of animals killed is 42,000 sheep, 92,000 cattle and 258,000 pigs. More than 5.7 million poultry have been lost.
There is to be a UCAB meeting in Kiev in December 2023 to explore further.