The Ukrainian government is taking measures to support the processing of agricultural products. However, in order to increase the range of value-added products, it is important to actively develop sales markets and improve legislation, in particular on cooperation between agricultural producers.

"Ukraine produces three times more grain than it consumes, and the surplus is exported. The same thing will happen with increased production of value-added goods. When we start processing a lot of stuff domestically, we will meet the domestic consumption level very quickly. That is why one of the key points of commodity producers reorientation is to find markets to sell their products to. It is also important that product quality meets all international standards. This is what farmers take into account when they start processing milk, meat and grain. Without sales markets, they will be "working for the warehouse," said Denys Marchuk, the UAC Deputy Chairman.

Today, import bans imposed by a number of EU countries are a significant problem for Ukrainian goods.

"The blockade of the western borders and the ban on exports to the EU have already had a negative impact on the markets for agricultural raw materials. Manufacturers of value-added products will face similar problems. And the most promising European market is already signaling surpluses of sugar, meat, and other products. Therefore, I repeat, we need to focus on sales markets," Denys Marchuk emphasized.

Consumers in Ukraine expect domestically produced food to become cheaper, and there is potential for this.

"The government is trying to implement a number of programs to support producers who will specialize in processing. We are talking about the possibility of preferential lending. For example, in the de-occupied territories, the 5-7-9 credit limits have been increased to UAH 150 million for producers who will be engaged in processing, and this is a significant potential. In the dairy sector, there is a need to significantly increase milk production to meet the needs of processing companies. As household milk production decreases, industrial production will increase, and this will require an increase in cattle numbers, which requires large investments. Export problems have already forced farmers to produce feed from grain. This was stimulus for the development of pig production. Currently, in the western regions, we see a significant amount of investment in poultry farming, new farms are being established with a population of 2,000-4,000. There are prospects for biogas production, which has export potential," added the UAC Deputy Chairman.

To further reduce the cost of Ukrainian food products compared to imported ones, the agricultural sector needs to develop cooperation.

"To reduce prices in the domestic market, it is necessary to actively develop the cooperative activity. Polish producers have cheaper production and logistics due to cooperation. If there are cooperatives in the agro-industrial complex, it will create an opportunity to produce quality products domestically that will be competitive with imported ones. It is important to improve the legislation, in particular in terms of patronage dividends, to stimulate the association of producers and rational distribution of financial resources in the cooperative," summarized Denys Marchuk.