On March 22, Maria Didukh, director of the public union "All-Ukrainian Agrarian Forum", on behalf of the leading agrarian public organizations of Ukraine, at the meeting of the Committee of the European Parliament on Agriculture and Rural Development announced that the spring sowing of 2023 was much more difficult than the previous years, due to the low financial security of farmers

During the full-scale aggression of the Russian Federation, the agricultural sector of Ukraine suffered huge losses, and Ukrainian farmers are working at a loss. According to KSE estimates, the direct losses of the Ukrainian agricultural sector amount to $6.6 billion. As of today, Russia has occupied about 8 million hectares (27%) of agricultural lands of Ukraine, and if we talk about indirect losses, then by the end of 2022, the total losses reached more than $40 billion.

Maria Didukh emphasized that despite all the obstacles, sometimes even under shelling, Ukrainian farmers go to the fields and sow seeds to ensure food security not only for Ukraine, but also for the whole world. 

"This year's spring sowing of 2023 is extremely difficult due to the lack of financial resources for farmers who are unable to purchase the necessary means of production for sowing. Therefore, taking into account the reduction of sown areas and the shortage of mineral fertilizers, the gross harvest of grain is forecasted to decrease to 53.3 million tons, which is 50% less than the pre-war volume of 2021. In addition, the shift of cultivated areas to soybeans and oil crops is predicted, as they have a lower yield and are easier to export," predicts Mrs. Maria.

Another important problem is complicated logistics, which consumes 60% of the price of agricultural products. Currently, the gap between world and domestic prices in Ukraine is about $140/t. As a result, grain is sold at a loss, and farmers cannot receive nessecary financial resources for sowing. 

In her speech, Maria Didukh emphasized the support of the EU, which Ukraine currently needs:

  • Assistance for farmers in the de-occupied territories, where the situation is now the most difficult - farms, equipment, production facilities are destroyed, fields are mined. The demining of territories is the key and most painful issue. Today, more than 5 million hectares of agricultural land are mined or contain remnants of explosive materials. Therefore, there is a request to the EU to participate in demining not only by providing financial support, but also by involving relevant experts to carry out this task.
  • Continuation of the work of the "Solidarity Corridors" and agri-food transit through the EU territories:
  • Assistance in the simplifying the veterinary control for direct transit of fodder grains and oil crops through the EU, specifically returning to the procedure of customs inspection only. Due to the check of goods even those that are in transit, long queues are formed at the border, especially with Poland. "We thank for the joint statement of the Deputy Prime Minister, the Minister of Agriculture and Rural Development of the Republic of Poland and the Minister of Agrarian Policy and Food of Ukraine regarding the regulation of the transit of Ukrainian grain and oil crops, but as of today, we do not see an improvement in the situation with cargo queues. " - noted Maria Didukh. 

- To improve cooperation between the competent authorities we need to obtain transit permits of live cattle through the countries of Romania and Bulgaria.

  • Political support for the "Grain Agreement", especially its extension for as long as possible, which enables planning of farmer’s actions.  
  • Preservation of preferential trade conditions with EU countries is a revival package for the agricultural sector, which has become one of the tools for stimulating and supporting the economy of Ukraine, creating additional opportunities for agricultural production during the war.
  • Access to financing, in particular in terms of providing loans for agricultural producers. After all, without financial resources, it is impossible to conduct a sowing campaign at the appropriate level. 

"Thank you for the comprehensive support of the EU and other international partners in our confrontation with the aggressor country. This support and assistance is extremely important for Ukraine, so that we can continue to function in the conditions complicated by the war. Together we will be able to guarantee food security in the world", concluded Maria Didukh. 

Let’s remind that the Chair of the Ukrainian Agri Council (UAC) Andrii Dykun met with the Chair of the Committee on Agriculture and Rural  Development of the European Parliament, Norbert Linz. The issue of further preferential regime for crossing the border with the EU for Ukrainian agricultural goods was discussed. 

Wednesday, 22 March 2023

 

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