Up to 43% of Ukraine’s agricultural exports are still shipped abroad as raw materials, depriving the country of a significant portion of the added value.
This was stated by Minister of Economy, Environment, and Agriculture Oleksiy Sobolev during the international conference Grain Ukraine, as reported by Ukrinform, citing his Facebook post.
Strategic Decisions for the Agricultural Sector
The minister emphasized the need for strategic decisions that will provide Ukrainian farmers with competitive advantages in the future. "I am confident that in just a few years, Ukraine will be famous not for a ton of grain, but for a ton of processed, certified, traceable products integrated into European and global supply chains," Sobolev said.
Processing as a Key Driver of Development
According to him, processing must become a key factor in development, as the scale of production in Ukraine is limited by physical factors such as land resources, agroclimatic conditions, water resources, and crop rotation patterns.
"Ukraine possesses 8% of the world’s black soil reserves, and the agri-food sector accounts for 17.5% of GDP. However, up to 43% of agricultural exports are still shipped as raw materials, and this is where we lose most of the added value. Processing is the only way to overcome these limitations," Sobolev emphasized.
European integration opens up access for Ukraine to a market of over 450 million consumers, as well as to investments and cutting-edge technologies. However, a transition period of at least 10 years will be required for full adaptation to the new conditions.
The minister added that Ukraine should not enter the European market as a raw material supplier, which puts pressure on domestic resources.
