Starting in October, the European office of the Ukrainian Agribusiness Club (UCAB) association commenced its operations in Brussels. The first international agricultural conference, 'Fields of Change: Outlining the Path of Ukrainian Agriculture,' has already taken place in partnership with AGCO Corporation.

AgroPortal.ua spoke with Nazar Bobytskyi, Head of the UCAB European Office, about the activities of the Brussels office, the main takeaways of the conference, and the steps required for the successful European integration of Ukrainian agribusiness.

Nazar, congratulations on opening the office in the center of the European Union. What will be the organization's tasks and plans?

Nazar Bobytskyi: The office opened on October 2, and as early as October 5 at the conference, we presented the launch of the office's operations and the presence of the Ukrainian agricultural sector in the EU capital to European stakeholders.

We see several main tasks.
First is the monitoring of regulatory and policy changes in the EU regarding the agricultural sector, climate policy, sustainable development, and any other areas related to agriculture. That is, we plan to track all changes that could pose risks to the access of domestic agricultural products to the EU market. This is a major block of issues, which is why UCAB made the decision that a functioning European office is necessary for this.

The second major direction is the beginning of thorough preparation of the Ukrainian agricultural sector for future pre-accession negotiations with the EU regarding the agricultural sector itself, its integration into the EU, and the adaptation of legislation.
It is necessary to understand how the EU's position in negotiations with Ukraine regarding the agricultural sector will be formed. This will not be an easy process, and it will be fragmented, as the European Commission's position will be influenced by many factors: from the stances of individual neighboring EU countries to the positions of European food enterprises—consumers of Ukrainian raw materials.
The EU has a vast palette of opinions and positions. The European Commission will face the challenging task of forming a consensus position. It is important for us to know exactly how this will happen, as it provides additional degrees of freedom and opportunities for Ukrainian farmers. No one can do this better than a specialized association like UCAB.

The third block of tasks is an active dialogue with the EU regarding support for Ukraine in post-war reconstruction. We are talking about the Ukraine Facility instrument and how it can be useful for the Ukrainian agricultural sector. Therefore, the task of the UCAB European office is to establish contact, listen carefully and monitor how the EU's approaches will be formed, and also to convey the position of Ukrainian farmers.

The fourth task is working on the image and reputation of the Ukrainian agricultural sector in Europe, as there is often a lack of knowledge about the structure of agricultural production, its history, and its role and significance in global food security. Instead, various stereotypes and clichés circulated by the competitors of our agricultural producers are at play. We must convey information about the real state of affairs.

This is quite a large scope of work...
Nazar Bobytskyi: I would like to remind you that UCAB is a powerful association, and we have sufficient resources. We rely on the expertise of the community's member companies and on our connections with agricultural researchers.

And there is already a result—the international conference. What thoughts were voiced at this forum from the Ukrainian and European sides?

Nazar Bobytskyi: An important element of the conference was a panel dedicated precisely to the Ukraine Facility—this new package of financial support for Ukraine proposed by the EU in June of this year. A financing package of 50 billion euros is envisaged, but of that amount, only 8 billion is directed toward the reconstruction and support of the private sector, where the agricultural sector plays a prominent, though not exclusive, role.

In this regard, the message from representatives of the European Commission and European financial institutions is very simple and at the same time important: investment or credit proposals that include a prominent social component, provide for support to rural communities, and invest in demining and the reclamation of lands in de-occupied territories will have a high chance of receiving financing from the Ukraine Facility and other financial assistance instruments. Priority will be given precisely to such projects.
In addition, borrowers will be able to take advantage of the grant component of such financial instruments. The advantage of these instruments is that they are significantly cheaper, but they are accompanied by a number of non-commercial requirements. Therefore, it is extremely important to understand the essence of these requirements.

Within the framework of the free trade agreement, the EU has removed all import duties and quotas for Ukraine. Your forecasts: will this decision be extended next year?

Nazar Bobytskyi: The current legal framework governing trade between Ukraine and Europe is the Association Agreement. Within its framework, there is a quota system for certain sensitive categories of agricultural products, and the EU has unilaterally suspended all restrictions. These autonomous trade measures remain in effect until June 2024. It is difficult to forecast, but I urge our farmers to keep their expectations realistic.

In your opinion, at what stage of readiness is the Ukrainian agricultural sector currently on its path to EU integration? Specifically, is the Ukrainian farmer mentally prepared for EU rules?

Nazar Bobytskyi: First and foremost, we must ensure compliance with Ukrainian legislation regarding animal welfare and finished product safety. We must avoid situations where chemical residues or pathogens are found in product batches, as all violations become the subject of investigations and cast a shadow on the reputation of our agricultural exporters. Now, more than ever, we need to take care of the reputation of our products and production. It is worth reviewing our production and financial plans once again and communicating them to UCAB members so that we have a consolidated position regarding possible new trade parameters with the EU. We must be prepared for a very difficult dialogue. We cannot achieve this without the participation of the association's member companies.

To wrap up our conversation, could you please summarize in bullet points what the Ukrainian farmer will gain from EU accession?

Nazar Bobytskyi: The most important benefit is unhindered access to EU markets. Once we become full members of the EU, all quotas will disappear. We will enter the EU Single Customs Union and a single regulatory field regarding non-tariff regulations—meaning the same rules of the game. Poultry and grain can bear the 'Made in the EU' stamp.

The second huge block of advantages consists of global export opportunities that the EU already possesses thanks to its extensive network of trade agreements—over 50 of them, ranging from Australia to Argentina, with third countries around the world. Of course, after our accession, these agreements will be adjusted because Ukraine will significantly alter the balance of power. However, together with the EU, we will be able to export much more than before.

Finally, the third major block of benefits is access to farmer support within the framework of the CAP (Common Agricultural Policy). This EU policy will also be revised, but key assistance elements related to encouraging sustainable production practices and rural community development will remain in these funds.

What are the requirements for the Ukrainian side?

Nazar Bobytskyi: The complete adaptation of domestic legislation to EU laws across the entire body of norms regulating agriculture. We can fight for certain limited transition periods or temporary exemptions for individual industries, but this will have a temporary, adaptive nature.

So, the first is the completion of the land market reform and the ability to use land in financial and credit relations. This must be transparent, civilized, and with minimal corruption.
The second task is to strengthen the effectiveness, independence, and professionalism of supervisory bodies for food safety, plant health, and animal health.

These institutional reforms have already begun, but are far from complete. Therefore, the agricultural sector, together with sound forces, must advocate for the completion of these reforms to prevent any simulation or superficial implementation.