According to the estimates of the Association “Ukrainian Agribusiness Club” (UCAB), export sales of Ukrainian agricultural commodities may grow by 8,3-14,3% in 2014 as compared to 2013. In monetary terms, this figure would account for about $4.8-5.1 billion. The main reasons for this increase include unilateral trade preferences provided to Ukraine by the EU and the Association Agreement between Ukraine and the European Union.

Based on UCAB calculations, Ukrainian exporters can economize on customs duties up to €140 million due to signing of the economic part of the Association Agreement. The other positive effects the Agreement entails are improvement of investment climate, implementation of European legislation, increased market transparency, access to EU funds and improved quality and safety of Ukrainian products.

The challenge for Ukrainian producers will be the increase of imports. At the same time, experts claim that, due to recent devaluation of the local currency, influx of cheap imports is not expected. However, wine and alcohol producers will have to adapt their branding policies due to the regulation of geographical denominations in the EU. Another challenge resides in the need for further adaptation of Ukrainian legislation to European standards.

Ukrainian eggs producers and several dairy plants are the first to enter the EU markets as they comply with basic EU standards. Chicken meat exports that started in the last year will fill in the quota of 36 thousand tones in 2014. Beef and pork exports would be more complicated. Similarly to chicken meat exporters, their access to the EU market can take one year or more, given sophisticated inspection procedures.

Currently, it is extremely important to Ukraine to adopt a package of legislation on quality and safety of food products, including the following draft laws: "On Amendments to Certain Legislative Acts of Ukraine on Food Safety"; "On State Control in the Field of Safety and Quality of Food and Feed and Animal Welfare; "On Amendments to Certain Legislative Acts of Ukraine on Identification and Registration of Animals"; "On Animal By-products not Intended for Human Consumption."

"Noteworthy, reduction of customs duties was not the only reason of exports increase to the EU since autonomous trade preferences were granted to Ukraine on May 15, 2014 while export sales increased by 2.8% ($51, 6 million) in January-April 2014 as compared with the reference period in 2013. The EU market is highly attractive for Ukrainian exporters and they are ready to use the opportunity of reduced customs duties to increase supplies to the EU", - the expert for agricultural markets of UCAB Igor Ostapchuk says.

Association "Ukrainian Agribusiness Club" 

3 floor, 146 Zhylianska Str. 

01032 Kyiv, Ukraine 

Phone/Fax: +380 44 2362097/79 

  [email protected]  

Tetiana Kotyk  

www.ucab.ua

The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.