Panel 2: Global market access for Ukrainian agriculture
The third session of the mini-conference looked at restoring Ukraine’s access to global markets and how that has to be seen against the background of what is happening in agricultural markets overall. Tassos Haniotis, Sustainable Productivity Adviser, Forum for the Future of Agriculture, gave the context. Compared to the past, three main changes are now driving the debate about agricultural policy: the level of food inflation, the change in natural gas prices, and the debate on food security in the context of geopolitical tensions.

With those changes “the terms of trade for agriculture have deteriorated.” The sector is suffering from a convergence of volatile fertilizer prices, rising agricultural prices, food inflation outstripping overall inflation, and a severe drop in consumers’ purchasing power. Natural gas in Europe is four-and-a-half times as expensive as in the US. And the global wheat supply – which accounts for 40% of global protein consumption – is more precarious.

Global food security is the most pressing reason for Ukraine to access world markets. Debates about the role of Ukraine in the EU should centre around this, given the country’s significant contribution to feeding the world.

“We don’t have a problem of food deficit in Europe, but that’s not the food security issue. Food security is global, in the same way as climate change is global. We have to decide whether our focus is the EU or global. And if our focus is global, then the EU and Ukraine have a parallel, converging path to cover a significant part of these emerging deficits around the world.” To shift to this global focus, Ukraine and the EU have to work as partners, he said, echoing a theme that arose again and again during the day.

What is being done in Ukraine – and elsewhere – to bring this partnership together? This was Mark Titterington’s question.
Albertine Van Wolfswinkel, Head of Corporate Responsibility Europe, Middle East and Africa, Cargill, introduced the company as a global player “working with farmers and customers for food and feed – in the middle of the supply chain connecting the dots”. “I very much agree that food security is a global question,” she said. “We need to feed more people within planetary boundaries and Ukraine plays a crucial role.”

She reiterated how resilient the people of Ukraine are and said Cargill continues to invest in the country. It was crucial to support farmers on getting back to their land safely with inputs, logistics, infrastructure and by restoring soil: “it all starts with the farmers”. As an example, Cargill has recently launched a programme to pay farmers for environmental services and incentivize them to enter carbon markets. War risk insurance is critical for large investments by the private sector. And in terms of trade, there will be fluctuations, so optionality is important.

Olena Kovalova, Sc.Ec., Former Deputy Minister of Agrarian Policy and Food of Ukraine, pointed out that agricultural exports are important not only for the sector but for Ukraine’s broader economy, providing revenue to the defence budget.

There are many opportunities, she said, and progress is being made despite the war. Ukrainian agriculture has already begun to modernize: farmers and food processors are using more alternative energy sources as a result of missile attacks on the existing energy system. Ukrainian food is already part of European value chains due to the range of different produce available. But much more is needed, from logistics development to port capacity. What’s important, she said, is a stable base for trade relationships, with participation of Ukrainian business and government in negotiations.

Coming to the end of the session, panellists highlighted, in a nutshell, what was critical for them.

Albertine Van Wolfswinkel emphasised “partnerships and not competition”. “All sectors need to restore the system together to continue to build back better. And we need to be doing this now, even in the difficult times of war.”

Olena Kovalova said that dialogue is crucial. “The conversation is being heard more and more often, on different platforms. That means we are hearing each other and trying to collaborate – consensus, common decisions.” Alongside that is supporting farmers and the general population against the biggest challenge, of continued Russian aggression.

Read the summaries of the other sessions at this event:

Welcome, introduction and panel 1

Panel 3: EU framework and Ukrainian agriculture

Watch the full sessions on our videos page and you can read the CEMA position paper.