In order to maintain the competitiveness of the Ukrainian agricultural sector in global markets, it is necessary to extend the restrictions that are currently in place on the domestic land market. This was stated by Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council, during a national telethon.
According to him, the war has shown that Ukraine has got advantages in agricultural production, even compared to European producers. This is due to the balance of effective coexistence of large agricultural holdings with small producers.
"Ukraine has created conditions where large agricultural holdings have been effectively developing alongside small and medium-sized agricultural producers. In such conditions, it is difficult for European producers to compete with us, as most of their farms have got 50-60 hectares under cultivation. In terms of the land bank of our farmers, this is a very small indicator, because we can form larger batches of goods faster and feed entire countries in Africa and Asia and even supply grain to Europe. Therefore, in such conditions, it is important for us to maintain this balance, which is strongly influenced by the available areas of producers," emphasized Denys Marchuk.
In his opinion, the current restrictions on the land market should be remained until the end of the war and for another two years after the victory.
"At a time when our agricultural producers are giving their last to the front, when we have got logistical problems and low prices for agricultural products in the country, the government should extend restrictions on the land market. They were introduced to protect small and medium-sized farmers who are unable to buy land nowadays. Therefore, the prohibition on the purchase of agricultural land by legal entities and the number of hectares that can be purchased by one person should be extended. Let me remind you that these restrictions, according to the current legislation, will cease to apply at the beginning of 2024," said Denys Marchuk, UAC Deputy Chairman.
He also added that Ukraine is currently on a course to integrate into the European Union with the ultimate goal of becoming a full member. It is important to join the EU with a strong agricultural sector and improved legislation. In this context, the problems of political games, when some countries unreasonably restrict exports and transit of Ukrainian agricultural products, should disappear.
In April of this year, Poland, Romania, Slovakia, Hungary, and Bulgaria forbade the import of a number of agricultural products into their countries, and transit was also restricted. These prohibitions are going to be canceled on September 15, 2023.
"Embargoes on exports to these 5 countries have created unfavorable conditions for trade between Ukraine and the EU. This is despite the fact that last year the European Parliament approved a duty-free regime with our country, which was extended for another year. The NBU estimates that we lose up to EUR 300 million every month due to these restrictions. That is why it is important for us that the "solidarity corridors" start working without any obstacles after September 15. Moreover, the processors of these countries are against stopping imports. Not to mention the transit, as the vast majority of agricultural products went to third countries, supporting the world's food security," summarized Denys Marchuk.
He hopes that the export restrictions will be canceled after the elections in these countries, as these steps by the 5 EU countries are political in nature and contradict the decisions of the European Parliament.
Wednesday, 5 July 2023