Ukraine is preparing to adjust its export policy for agricultural products in light of the completion of the free trade regime with the European Union, which was in effect until June 5, 2025. Minister of Agrarian Policy Vitaliy Koval emphasized that to minimize potential losses and enhance export efficiency, the country plans to reduce its dependence on raw material sales and strengthen the development of its domestic processing industry.
This is reported by Business • Media
Focus on Processing and Added Value
Currently, Ukrainian agricultural producers have duty-free access to the EU market. However, in light of the conclusion of this regime, industry representatives, particularly producers of vegetable oils, have already approached the government with a proposal to limit the export of oilseeds. This is intended to stimulate an increase in processing volumes within the country, allowing for the export of products with higher added value, particularly vegetable oil, which is significantly more profitable than raw materials.
“Ukrainian oilseed processing plants are operating at only about 65% capacity. Our ministry is exploring all ways to utilize Ukrainian processing plants to create added value and processed products.”
Plans to Reduce Raw Material Exports
Every year, Ukraine exports nearly half of its soybean harvest and a large portion of its rapeseed. According to the minister, it is now necessary to reconsider export approaches to maximize the potential of domestic raw materials for producing high added value products. Increasing the share of processing and exporting finished products will allow Ukraine to strengthen its position in the international market and ensure additional budget revenues, even after the completion of trade preferences with the EU.