Ukraine's agricultural sector continues to operate despite the full-scale war, enormous losses and uncertainty. The occupation of part of the country's territories, mined fields, and the destruction of infrastructure have had a significant impact on agricultural producers. At the same time, the country remains on the path of European integration.

Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council (UAC), spoke about the main challenges, losses and prospects of the industry on Radio KYIV FM.

“According to the World Bank, Ukraine's direct losses have already reached USD 10 billion, and taking into account the lost profits over the three years of war, this amount increases to USD 80 billion. Recovery after the victory will take many years to catch up with the lost opportunities,” said Denys Marchuk.

Ukrainian farmers have lost significant areas of arable land that are now unusable due to the fighting or mining.

“Due to the full-scale invasion and partial occupation, we have lost access to 5 million hectares of land, which is about 20%. If we talk about the land that is formally available, but for various reasons cannot be cultivated due to mining or contamination, then such areas are about 2 million hectares. The area of demined land is increasing every month thanks to international support and the involvement of certified groups with foreign experience and equipment, but the full demining of Ukraine may take from 10 to 15 years. The World Bank estimates that Ukraine will need more than USD 37 billion to fully demine. This is a huge amount of money, and it could grow as the territories are liberated. Therefore, it is critical to attract international funding,” the Deputy Chairman of the UAC emphasized.

According to him, the most critical situation with demining is in Kherson, Zaporizhzhia, Dnipro, Mykolaiv, Sumy and Chernihiv regions.

Despite the war, Ukraine continues its European integration course, introducing new standards and norms in agriculture.

“Nowadays, Ukraine has already supplied 70% of its agricultural products to the EU market. But this is not enough - we need to fulfill more obligations to ensure stable access to European markets,” said the Deputy Chairman of the UAC.

The key requirements of the EU are product quality, compliance with environmental regulations and compliance with European standards.

“The European market is very demanding. Our farmers have to invest in certification, quality control, and the introduction of new technologies. These are significant costs, and without government support, farmers simply will not be able to adapt,” emphasized Denys Marchuk.

According to him, the UAC proposes to introduce two parallel regulatory regimes for Ukrainian farmers as part of European integration.

“The first regime is for farmers who fully comply with EU requirements. They will receive unlimited access to the European market and funding through the Common Agricultural Policy (CAP) from the moment Ukraine joins the EU. The second regime is for farmers who cannot fully comply with all EU regulations (e.g., use certain plant protection products that are prohibited in the EU but allowed in other countries). They will have limited access to the European market and will not be able to receive CAP subsidies,” explained Denys Marchuk.

To adapt the Ukrainian agricultural sector to the new conditions, the UAC also proposes a long-term transition period of 20 years after Ukraine's accession to the EU. During this time, farmers will gradually adapt to the requirements of the European market, which will minimize risks for the industry.