Before the outbreak of full-scale war, Ukraine was one of the largest exporters of agricultural products in the world. Its share in wheat exports was 10%, barley 15%, and sunflower oil production 47%. This made Ukraine a critical player in ensuring food security in many countries, but the war forced a rethinking of all aspects of the agribusiness sector - from production to logistics and access to markets.

Leading experts from the agricultural sector examined the main challenges and opportunities for agribusiness in today's realities during an online discussion dedicated to the third anniversary of the large-scale war and its impact on Ukraine's agricultural sector, organized by the Ukrainian Agribusiness Club association.

Economic losses: focus resources on areas with economic potential

The scale of destruction in agriculture is colossal. According to the Ministry of Agrarian Policy and Food of Ukraine, the direct losses of the industry exceed $10 billion. These losses include destroyed infrastructure, damaged machinery, destroyed warehouses and elevators.

Another major problem is the loss of arable land. Due to occupation and mining, about 20% of agricultural land remains inaccessible for plowing. This is more than 6 million hectares. The problem of mines is especially acute in the frontline regions.

According to Taras Vysotsky, Deputy Minister of Agrarian Policy and Food of Ukraine, the demining process is critical for the industry's recovery.

“We must return these lands to cultivation, because not only our economy, but also the global food system depends on it,” he said.

However, demining is a complex and lengthy process that requires significant financial resources and international assistance. Petr Krogman, Chairman of the Board of Directors of Agromino, co-owner of Czech agri-energy company ZD Dobruška, notes the need to consider economic feasibility during demining: “It is necessary to focus resources on those areas that have economic potential. We cannot afford to waste resources on unprofitable land”.

Regional imbalances: ensure support for agrarians from the affected areas

In addition to the loss of land, the war has caused significant imbalances between regions. The western part of Ukraine, which has remained relatively secure, is showing strong economic performance. At the same time, farmers from the east and south of the country face serious challenges. Destroyed infrastructure, complicated logistics, restricted access to markets and increased risks to life create unequal conditions for doing business.

Aivaras Abromavicius, Chairman Agro-Region, Minister of Economy of Ukraine 2014-2016, said: “Farmers at the event can continue working in stable conditions, while farmers from the east face daily challenges. This is not only a matter of economy, but also of national security. We must ensure fair distribution of resources and support to the affected regions.”

Grain from Ukraine: Ukraine remains a reliable partner and food supplier

Despite the difficulties, Ukraine continues to fulfill its international obligations. One of the most successful examples was the Grain from Ukraine initiative, which helped to provide food to more than 10 million people in the poorest countries of the world.

Ukraine remains an important player in the global food system. According to Mr. Krogman, the domestic agricultural sector demonstrates a unique ability to adapt to new conditions.

“Ukraine has proved that even in the most difficult circumstances it can remain a reliable partner for the world. We continue to fulfill our commitments and help maintain stability in the global food market,” he emphasized.

EU integration: huge potential for cooperation in the agricultural sector

The Ukrainian agricultural sector is facing an important stage of adaptation to European standards. The EU has become one of Ukraine's key partners by opening markets for duty-free exports of domestic products. Zero quotas allowed to significantly increase trade volumes even in the conditions of war.

However, integration requires systemic changes in many aspects, in particular, compliance with environmental standards, ensuring sustainable development and compliance with strict quality control standards. Aivaras Abromavicius notes the importance of joint work with European partners: “Ukraine and the EU have a huge potential for cooperation. But in order to fully realize this potential, Ukraine must adapt to European rules and standards. This will open new opportunities not only for the agricultural sector, but also for the entire economy of the country”. 

At the same time, European farmers are concerned about the competitive advantages of Ukrainian farmers due to lower production costs. This issue requires a comprehensive solution, which includes the development of joint programs to support small farmers, introduction of environmentally friendly technologies and ensuring equal conditions for all market participants.

Agribusiness labor: automation overcomes labor shortages

The use of modern agricultural technologies, automation of processes and involvement of precision farming technologies have become the main tools to overcome the labor shortage.

“The use of the latest technologies is not just a requirement of the time, but a necessity to maintain the competitiveness of the Ukrainian agricultural sector. Innovations make it possible to compensate for labor losses and improve production efficiency,” said Petr Krogman.

The role of international investment in the sector's recovery

Investments from international financial institutions have become an important source of support for the Ukrainian agribusiness sector. Such organizations as the World Bank, EBRD and the Food and Agriculture Organization of the United Nations are implementing programs aimed at providing financing for agrarians. In particular, there are grant programs to support farmers working in the affected regions. According to Petr Krogman, international investments allow not only to support farmers in the short term, but also to create conditions for long-term development. After all, grants and soft loans help farms to modernize equipment, introduce new technologies and improve the quality of products.

Attracting private investors is an important aspect. Aivaras Abromavicius stressed that transparent business conditions and security guarantees for investors should become a priority of the state policy: “Ukraine should create favorable conditions for attracting international capital. This concerns not only financial issues, but also protection of investors' rights, simplification of regulatory procedures and ensuring stability”.

Predictions for the agribusiness sector after the end of the war

Experts and market players agree that the Ukrainian agricultural sector has a huge potential for recovery and growth. However, for this to happen, a number of conditions need to be met:

1. Land demining, infrastructure rehabilitation and stability guarantees are the first priorities.

2. Introduction of innovations will increase productivity and competitiveness.

3. Compliance with EU standards will open new markets for Ukrainian products.

4. Development of the processing industry will create added value and provide jobs.

“Ukraine has every chance to become one of the leaders of the global agricultural market. But this requires coordinated actions of the state, business and international partners”, - Aivaras Abromavicius is convinced.

President of UCAB Alex Lissitsa emphasized that the Ukrainian agricultural sector demonstrates stability and readiness for development: “No difficulties can change our strategic course. Ukrainian agrarians are not just adapting to new realities, but are already actively shaping the future of the industry by introducing European standards and improving the quality of products. This is not just a necessity, but a key to success in international markets”.

According to Nazar Bobitski, Director of the UCAB EU Office, the integration of the Ukrainian agribusiness sector into the European market is a unique opportunity. “It is important that Ukraine does not just fulfill formal requirements, but effectively uses European instruments to develop its own agricultural sector,” he summarized.