The Ukrainian agricultural sector may face significant financial losses as it aligns with European Union standards. According to estimates from the All-Ukrainian Agricultural Council, the need to abandon around 100 active substances in plant protection products could result in annual losses for farmers reaching $500 million.
This is reported by Business • Media
Main Financial Risks for Farmers
Experts note that losses from reduced yields will amount to $202.7 million per year. Additionally, costs for purchasing plant protection products will increase by $297.6 million, while costs for their application will rise by $7.6 million. Overall financial burdens could reduce the profitability of agricultural production by up to 30%, depending on the crop grown.
The reduction in agricultural profitability could be up to 30% depending on the crop. This may lead to a shift in the breakeven point, and in unfavorable years, many farms will operate at a loss.
Medium and small agricultural enterprises may be more vulnerable to the new standards. There are particular concerns regarding restrictions on crops that are essential for Ukrainian exports, including rapeseed, winter wheat, and sunflower.
EU Integration and Legislative Changes
Currently, bilateral screening meetings are ongoing between representatives of Ukraine and the European Commission, focusing on issues related to the agro-industrial complex and rural development. As a result of this process, a detailed plan for implementing European norms into Ukraine’s national legislation is expected to be developed.