“Check against delivery”
Honourable guests, ladies and gentlemen,
It is my great pleasure to join you here in Kyiv, at this important event, and at this important moment. We have recently passed a solemn anniversary: one thousand days since Russia began its brutal and illegal invasion. I recall those days clearly; it was over 1,000 days ago, but it could have been yesterday.
I recall speaking with Minister Koval’s predecessors; Minister Roman Leshchenko, and Deputy Minister Taras Dzoba. They spoke of how Ukrainian farmers were fighting at day, and working to provide food at night. They spoke of how Russia was taking Ukrainian soil and using it “as a weapon”. In the face of this weapon, the farmers and food workers of Ukraine did not stand down. They stood firm and held strong.
Let me share my deep admiration for the people of Ukraine, and especially the farmers, for their extraordinary resilience. And let me underline my solidarity, and that of the EU, in your fight against the aggressor.
As a Pole, I remember the words of Poland’s President Lech Kaczyński in Tbilisi in 2008 in the face of Russia’s invasion of Georgia – today Georgia, tomorrow Ukraine, next the junction of the Baltic States, and then the railways to my country, Poland. Unfortunately, the first steps in this transgression have been fulfilled.
We are aware that Ukraine’s battle is not only about its own independence, but about the security of Europe as a whole. I would like to take this opportunity to share some reflections, in the context of the present war, but also in the context of Ukraine’s future membership of the Union.
What will be the continued role of Ukrainian agriculture, after the war, after the victory, in which we believe, and after the EU-supported reconstruction of the country?
Rebuilding food production
First of all, we must focus on rebuilding farms and food production in Ukraine. In my home country of Poland, we say: “Our farmers feed us and defend us”. These words are in reference to the history of Poland; they now reflect the present reality of Ukraine.
Since the beginning of the war, the farmers of Ukraine have defended their land, their neighbours, and their nation. In doing so, they have defended us, in the European Union and across the world – they have defended our democracy and our food security.
Now is our moment to honour the courage they have shown, and the sacrifices they have made. Now is our moment to defend the farmers of Ukraine.
In particular, Ukraine should consider structural changes in its agriculture towards strengthening small and medium-sized family farms as an alternative to large-scale farms, mostly dominated by foreign capital.
Contrary to some opinions, food security does not require a system of large farms, but a well-organised and well-supported family farming system.
It is worth stressing that supporting small and medium-sized farms is one of the key elements of the Union’s common agricultural policy.
The European Commission has taken several concrete steps to help the Ukrainian farming community, including small scale farmers.
For example, we have provided €50 million for the Production Support Grant scheme. This scheme was established as a direct payment instrument to support registered small farms of less than 120 hectares, or with up to 100 milking cows per farm. I am very pleased that over 12,000 small farms could benefit from this scheme.
Reinforcing value
Secondly, we must focus on reinforcing the value of Ukraine’s agricultural products. This can be achieved in a number of ways.
In the short term, the European Union is supporting Ukraine, to ensure your farmers get full value for their products. For example, along with the FAO, we have worked on strengthening agricultural value chains for several products produced by small farms, such as mountain cheeses, berries, and other products.
In the longer term, we must focus on the development of agricultural processing.
At 50 million tonnes, Ukraine’s exports of cereals in 2021 was the third highest in the world, after the US and Argentina. But in terms of the value of food exports, it was only USD 24 billion, putting Ukraine in 20th place.
Exports of unprocessed agricultural products do not provide economic benefits to Ukraine commensurate with its potential. This potential is only fully exploited when a strong agricultural sector is in synergy with the processing sector.
To increase value, and also in the context of its future membership of the Union, Ukraine should also focus on the quality of its food.
With your excellent lands that do not require intensive chemical fertilisation, Ukraine can have a great opportunities for organic production, for which demand is increasing both in Europe and globally.
Geographical indications can also be an opportunity to promote and enhance the market value of agricultural products.
Let me assure you that the European Union will work with Ukraine on developing all of these areas.
Restoring Exports
Finally, we must focus on restoring Ukraine’s exports, especially to its traditional markets.
Rebuilding routes
As one of the world’s largest grain and oilseed producers, Ukraine’s exports continue to be of great importance for global food security, especially for countries in Asia and Africa, the Far East and the Middle East.
In delivering these exports, the European Union is also significantly helping Ukraine.
Since May 2022, the Solidarity Lanes have acted as vital routes for Ukraine’s exports. Indeed, during many periods, they were the only option for Ukraine to export its agricultural produce.
In total, between May 2022 and August 2024, 153.4 million tonnes of Ukrainian grain, oilseeds and related products were exported through the Solidarity Lanes and the Ukrainian Black Sea ports. Half of these volumes were shipped by the Black Sea ports and half by the Solidarity Lanes.
Since winter 2023/24, the volume and share transported via the Black Sea has significantly increased and exceeded the volumes transported via the Solidarity Lanes.
Ukraine has been able to resume the successful operation of the Odessa port, which permits the supply of food to the rest of the world. All this was possible despite intensified Russian attacks over these last months on civilian vessels and port infrastructure.
Together with the Solidarity Lanes, this route permitted Ukraine to export all its exportable volumes from the 2023 harvest.
During July-October 2024 almost 21 million tonnes was exported (an increase of +34% compared to the previous season).
Restoring destinations
Russia did not only disrupt export routes, but also export destinations.
Looking at the pre-war Ukrainian agriculture We see growing yields and harvests, and we see high exports of Ukrainian grain, over 50 million tonnes a year, with more than 80% of these exports going to Asian and African countries, and less than 20% going to countries in the European Union, mainly Spain, the Netherlands and Italy.
Following the Russian aggression, most of Ukraine’s grain exports were directed to the European Union, with over 50% of exports going to the market.
In 2022 alone, Ukraine’s agricultural exports to the European Union grew by EUR 6 billion, from 7 to 13 billion. Almost 5 of this additional 6 billion went to 5 border countries – Poland, Slovakia, Hungary, Romania and Bulgaria.
This sudden increase in agricultural imports from Ukraine has, for obvious reasons, destabilised the market and caused tensions, especially in the five countries. This was, of course, not the result of the actions of Ukraine, but of Russia and its war. Not for the first time, Russia is using food as a weapon in its imperial politics. In this case, it has used the blockade of Ukrainian exports as a way to destabilise global and European agricultural markets.
Here I would like to thank Minister Koval and his services for the good cooperation in implementing the safeguards foreseen under the Autonomous Trade Measures.
For certain sensitive products, the emergency brakes have been activated during the last months, allowing us to control pressures on certain sectors.
While this system works well, we need stability. It is in our joint interest to agree on a more lasting and stable trade arrangement between the EU and Ukraine.
In future, we must find the right balance for trade with the EU. I am confident that we can do so.
Future exports to the European Union may be difficult, given that the European Union has production surpluses in the most important agricultural product groups. In cereals, milk and processed milk, meat or fruit and vegetables, the Union has a 10-20 % export surplus and competition on this market may be difficult for Ukraine, given the high quality and production method requirements.
Restructuring for EU integration
In view of its agricultural trade relations with the European Union, Ukraine should think about restructuring its agricultural production, focusing on oilseeds and protein crops, as the European Union has and will probably continue to have a deficit in these products. For example, the Union imports significant quantities of soya from America, and Ukraine can therefore be competitive: firstly, given its geographical proximity, and secondly, considering that soya from Ukraine is not a GMO product, which matters in the Union.
In addition to finding the right balance for trade with the EU, it is vital that we re-establish Ukraine’s traditional export destinations across the world.
While there is a limit to the potential expansion of Ukraine’s exports to the EU, the world, on the other hand, needs the grains of Ukraine, as well as other essential products.
Since November 2023, after the reopening of the Black Sea ports, Ukrainian exports to their traditional destinations in Africa and Asia are growing.
Significant volumes of wheat have been exported to Indonesia, Egypt, Algeria and Vietnam.
Continuing to re-establish these traditional export destinations will be vital: for the long-term prospects of Ukraine’s agriculture; to avoid saturation of the EU market; and to ensure food security for populations across the world.
In this crucial task, you can count on full EU support.
Conclusion
Ladies and gentlemen, to conclude:
Let me once again thank Minister Koval and his government colleagues. Let me once again share my deep admiration for the farmers and citizens of Ukraine. And, once again, let me declare that you have the full support and solidarity of the European Union.
Let me assure you that the European Union will work with Ukraine on the developments of its agriculture, to restore and preserve Ukraine’s position on world markets, while adapting Ukraine’s agriculture to the challenges of future membership of the European Union
More than ever today, we must remain united, and work constructively together, to achieve our common European goals.
In the face of conflict, we must call on a spirit of co-operation. Russia wants to divide us, and to use food as a weapon of war. Let us come together, and work together, and use food in defence of peace.
On that note, I thank you for your time, and I wish you continued courage and success.
Source – EU Commission