In a major development for the European agribusiness sector, Andriy Dikun, the head of the All-Ukrainian Agrarian Council (VAR), expressed Ukraine's intention to join the European Union not primarily for trade benefits but to uphold democratic values during the 10th European Congress of Agribusiness Managers held in Poland. The congress highlighted the essential collaboration between Ukrainian, Polish, and European farmers, underlining the shared democratic aspirations that unite them. Dikun emphasized that Ukraine does not aim to be a competitor to European agrarians. Instead, he pointed out that in the future, Ukraine will only export a maximum of 20% of its agricultural products to the European market.
"We want to join the EU not to export our goods, but because we have chosen a democratic path, support European values, and have much in common with European countries, including Poland," Dikun remarked during a panel discussion on the competitiveness of European agriculture on the global stage. This sentiment reflects Ukraine’s prioritization of democratic alignment over economic gain in its EU accession aspirations.
Dikun further elaborated on the importance of establishing a transitional period for Ukrainian farmers and stressed that unified regulations across all markets are unattainable. He questioned, "If an agri-producer sells products to Africa instead of the EU, does he have to follow EU rules?" This reflects the complexities that arise when trying to harmonize agricultural policies across diverse markets and the need for tailored approaches based on specific circumstances.
The congress also addressed the effective collaboration that has been nurtured between Ukrainian and Polish farmers, particularly in the dairy sector. Dikun noted a significant presence of Polish dairy products in Ukrainian stores, which is a testament to good communication and partnership between farmers of both nations.
Despite the ongoing challenges posed by the war in Ukraine, Dikun asserted that the Ukrainian agrarian sector remains competitive without the support of governmental subsidies, contrasting sharply with the reliance on EU subsidies among Polish farmers. He stated, "Around 1.3 million farmers in Poland primarily rely on EU subsidies, while the Ukrainian sector is sustaining itself under challenging conditions." This highlights the resilience and adaptability of the Ukrainian agriculture sector, which continues to thrive despite external pressures.
The congress outcomes are expected to influence European policymakers as the agricultural policies of Poland and the EU evolve. Dikun emphasized the need to clearly define the date for Ukraine’s accession to the EU and the future Common Agricultural Policy (CAP) that will be in place at that time to better prepare Ukrainian farmers for upcoming transitions.
Meanwhile, the wider Ukrainian economic landscape is seeing fluctuations in its key metallurgical exports. Recent statistics indicate that Ukrainian metallurgical enterprises have significantly increased the export of steel semi-finished products by 48.9% in February 2025 compared to January, escalating to 120.08 thousand tons. However, this is a 15.4% decrease from the same month the previous year. Approximately 70% of this output has been directed towards Bulgaria and Turkey, with a notable increase in demand from these markets compensating for the halt in supplies to Egypt.
Specifically, Ukrainian shipments to Bulgaria reached 56.62 thousand tons, marking a staggering 137.6% rise month-over-month, while Turkish imports rose to 29.95 thousand tons, a 45.6% increase. Nonetheless, overall export figures for the first two months of 2025 reveal a stark decline of 44.9% compared to 2024, totaling 200.7 thousand tons. This downturn illustrates the prevailing challenges in global steel markets spurred by various geopolitical and economic factors.
Adding another layer to the situation, the mining sector also reported a decline in iron ore exports, falling by 21.4% in February 2025 against January to land at 2.46 million tons valued at $202.34 million. This reduction is largely attributed to diminished demand from China, which has traditionally been the largest consumer of Ukrainian iron ore. Deliveries to China saw a marked drop of 24.8% in February, with exports forecasted to continue their downward trend due to ongoing challenges faced by Chinese steel producers, who are grappling with weak demand and increasing trade restrictions.
In January and February, overall exports decreased by 1.2% compared to the same period in 2024, comprising a total of 5.59 million tons, of which 3.02 million tons headed to China. The ongoing turbulence in the Chinese economy contributes significantly to this decline, impacting the entirety of the Ukrainian export landscape.
Conclusively, as Ukrainian agriculture looks towards eventual integration with the European Union, it must also navigate a challenging export environment influenced by global demand and regional partnerships. The outcomes from Dikun's discourse at the congress, alongside the metrics for agricultural and metallurgical exports, underscore the resilience and dynamism within Ukraine’s economic framework, even as it faces a myriad of challenges. Future political decisions and economic adaptations will be pivotal as Ukraine works to enhance its competitiveness on the global stage across various sectors.
