On November 13, 2024, International Finance Corporation (IFC), in partnership with the Ministry of Finance of the Czech Republic and in collaboration with the Ukrainian Agribusiness Club (UCAB), held the seminar, Developing Sustainable Value-Added Grain Processing in Ukraine, at Global Grain Geneva 2024. This seminar brought Ukrainian and international agribusiness companies and investors together in order to discuss opportunities and solutions for developing value-added grain processing in Ukraine. The seminar was organized by IFC’s AgriResilience Project, which is focusing on facilitating private sector investments in sustainable and resilient food ecosystems in Ukraine and in Central and Eastern Europe.

Experts discussed the war's impact on the Ukrainian grain and oilseeds sector, revealing supply chain vulnerabilities and investment opportunities. Despite increased costs, Ukraine remains competitive due to its fertile land and skilled labor. Meeting the European Union’s integration terms, especially the EU Green Deal, is key to further investments in the sector. The need for analytical tools and market research was emphasized, with a focus on niche markets and value-added products.

"These dialogues are crucial to discussing Ukraine's grain processing opportunities and aligning Ukraine with EU standards. The EU is providing significant funds to help Ukraine develop and integrate its agricultural sector into both domestic and export markets. We are actively adapting EU standards and creating an ecosystem for small, medium, and large enterprises in agriculture, focusing on the processing industry." – said Alex Lissitsa, President of UCAB and Chairman of the Board of IMC.

Petr Krogman, the Chairman of the Presidium of the Ukrainian-Czech Chamber of Commerce (UKRCHAM), highlighted, - "Insurance instruments to mitigate war-related risks are required in order to enable private investments in developing value-added secondary processing, thereby creating value addition within the country. The experience of the Czech Republic demonstrates that the development of marketing and trade cooperatives can empower farmers and to position Ukrainian food products on global markets. Policies and support programs for farmers located in the regions in eastern and southern Ukraine, that are most affected by the war, are essential to sustaining their integration within Ukraine."

"Ukraine's grain and oilseed production capacity can reach 112.2 million tons with an export potential of 80.3 million tons, given a successful post-war recovery and the development of the processing industry. However, this requires investment support and additional funds. To attract foreign investments, we need tools to protect investors against capital loss, to prevent hostile takeovers, and to address post-war recovery challenges." – said Mykola Gorbachev, President of the Ukrainian Grain Association (UGA).

"Over the past decade, many Ukrainian grain processing enterprises have modernized their equipment and technologies, thus improving the quality of their flour and bakery products quality in order to meet international standards. In 2023, Ukrainian flour was supplied to 24 EU countries, with record exports of breakfast cereals and bakery products. Despite the war-related challenges, such as military attacks and their consequences, electricity shortages, supply chain disruptions, shortages of labor and fierce competition, Ukrainian grain processors have succeeded in maintaining their competitiveness on international markets." – said Rodion Rybchynskyi, Head of the Union of Millers of Ukraine.

"IFC is committed to supporting investments in developing sustainable and resilient food value chains in Ukraine and in Central and Eastern Europe. Today we brought together European and Ukrainian industry leaders in order to discuss the challenges and the opportunities in this sector, which will help the industry to shape the way forward and to identify how the strategic and smart integration of the Ukrainian agriculture and food sectors into EU food value chains could unlock new opportunities for Europe in addressing global food security challenges" – said Oksana Varodi, Regional Upstream and Advisory Lead at IFC’s Manufacturing, Agribusiness and Services Department in Europe.

The seminar concluded with a panel discussion on the investment opportunities and challenges in value-added grain processing and logistics for exporting in Ukraine, led by Robert de Groot, Senior Industry Specialist for Agribusiness at IFC, featuring the views of European and Ukrainian industry leaders on the need for innovation, diversification and the smart integration of the Ukrainian agriculture and foods processing sectors into EU and global value chains.

IFC, together with the Ministry of Finance of the Czech Republic and with UCAB, is sincerely grateful to the speakers and participants of this seminar for their valuable insights and opinions. Once again, this seminar highlighted the potential of Ukraine's agricultural sector and its important role in global food security. By facilitating the dialogue and cooperation between industry leaders, policymakers and investors, together we can build a more sustainable and stable agricultural future for Europe and improve global food security.