There was a presentation of the analytical study “Analysis of the impact of the war on the agricultural sector of Ukraine”, which was conducted by the Center for Economic Recovery and EasyBusiness. The event discussed the impact of Russian aggression on the agricultural sector of Ukraine, what solutions are needed to eliminate the lack of working capital among farmers, how to solve the problems of complex and expensive logistics, and what will 2023 be like for the industry in general? This is reported by Ministry of Agricultural Policy.
The Minister of Agrarian Policy and Food of Ukraine Mykola Solsky took part in the online discussion of the analytical study of the Association “Ukrainian Club of Agrarian Business” (UCAB).
He noted that the current year is quite difficult for the agricultural sector, it is expected that difficulties will have to be faced next year as well.
The main problems of the Ukrainian agricultural sector are export difficulties, expensive logistics and low grain prices for farmers. Adverse weather conditions and the energy crisis also have a negative impact on the activities of farmers.
Mykola Solsky noted that steps are already being taken to reduce existing risks for the agricultural sector.
“We are working to increase the amount of credit for farmers for the next year. We are negotiating with the World Bank on the possibility of extending the 5-7-9 program. We are discussing the issue of increasing credit limits. It takes some time to implement our initiatives,” Mykola Solskyi said.
He added that the budget foresees support programs for the smallest agricultural producers. For the largest, AFC (International Finance Corporation) projects are implemented.
Mykola Solskyi also reported that the Ministry of Agrarian Policy, together with the World Bank, is preparing a compensation program for the cost of installing generators or solid fuel boilers at elevators.
“There are separate point programs that will take place in the winter and will have priority in the de-occupied territories. The first priority is compensation for generators or something similar. We are currently working on it with the World Bank,” the Minister said.
Preliminarily, the program should start working on January 1. Applications will be accepted through the State Agrarian Register.
Also during the event, the Minister commented on the cost of transportation for agricultural producers. Mykola Solsky emphasized that the system of tariff formation for transportation services requires coordination between all parties to the process.
Separately, the Minister focused on the discussion of the Grain from Ukraine humanitarian program, emphasizing the importance of its implementation.