Roadmap for EU Integration of the Dairy Sector of Ukraine
On February 27, an introductory meeting “Roadmap for EU Integration – Dairy Sector of Ukraine”, was held. It was attended by representatives of the Ministry of Agrarian Policy and Food of Ukraine, the Ministry of Economy of Ukraine, The State Service of Ukraine for Food Safety and Consumer Protection, the Union of Dairy Enterprises of Ukraine (SMPU), Association of Milk Producers of Ukraine and Swiss-Ukrainian program Quality FOOD Trade Program (QFTP), as well as interested representatives of the Ukrainian dairy business and the expert community.
The EU institutions delegated representatives of the Directorate-General for Agriculture and Rural Development of the European Commission (DG AGRI), the European Dairy Association (EDA), and the Embassy of the Kingdom of the Netherlands in Ukraine to participate in the event. Switzerland was represented by the Swiss State Secretariat for Economic Affairs (SECO) and the consulting company SAFOSO AG (Switzerland).
The meeting was moderated by Elizabeth Svyatkivska, coordinator of the EU Integration Committee of SMPU.
Arsen Didur, Executive Director of the Union of Dairy Enterprises of Ukraine, and Hanna Lavreniuk, General Director of the Ukrainian Milk Producers Association, confirmed the readiness of the dairy industry – both milk producers and processors – to adapt to the norms and rules of the European dairy industry. Arsen Didur noted that the main task of the EU Integration Committee is to develop the Roadmap for EU integration of the Ukrainian dairy sector and to establish communication with representatives of the industry.
Despite the ongoing military operations in Ukraine, which are causing damage, including to agricultural enterprises, the dairy industry is being restored, and adaptation to European requirements is ongoing. According to Hanna Lavreniuk, during the active hostilities, 20% of the livestock was lost, and about 100 farms were destroyed, but despite all the difficulties, milk production by agricultural enterprises had already reached pre-war levels. Andriy Tabalov, General Director of the Voloshkove Pole dairy company, Chairman of the European Integration Committee of SMPU spoke about the need for closer ties with the European market. He emphasized that more active integration of the Ukrainian dairy industry into the European market would benefit not only Ukraine but also the EU because Ukraine can be considered a guarantor of Europe’s food security.
The European participants in the meeting unanimously confirmed their readiness to support Ukrainian dairy sector on its way to the common market. Laurens van Delft, Director of Trade and Economics of the European Dairy Association (EDA), noted that the Association Agreement between Ukraine and the EU and the Deep and Comprehensive Free Trade Area created the basis for closer economic ties. The following steps are to insist on continued tariff liberalization and the removal of remaining administrative barriers that hinder free trade in dairy products. “We recognize that full trade liberalization between the EU and Ukraine is a complex process that requires careful management, and we believe that the European Commission will follow an appropriate approach,” he said. The EDA representative also emphasized that the Ukrainian dairy industry has already proven that it belongs in the European dairy market and confirmed the EDA’s commitment to supporting Ukraine on its path to integration.
Support for the Ukrainian dairy sector was also announced by Marco Kräuchi, Program Manager, Swiss State Secretariate for Economic Affairs (SECO). He reminded the participants that Switzerland has traditionally and for a long time supported the Ukrainian agricultural sector, in particular the dairy sector, through the Quality Food Trade Program and now through assistance in developing the Roadmap. Manon Schuppers, Co-CEO of the consulting company SAFOSO AG (Switzerland), confirmed its readiness to continue supporting the Ukrainian dairy sector. “The Quality Food Trade Program has been successfully operating in Ukraine for many years, and a lot has been done specifically for the dairy sector. Now, the program’s range of tasks is expanding. It started with assistance in quality control issues in milk production. Now, during the integration, attention should also be paid to other necessary issues, in particular animal welfare and agricultural sustainability,” she noted.
Carolien Spaans, Agricultural Counsellor, Embassy of the Kingdom of the Netherlands in Ukraine, also expressed the readiness of the Netherlands to share experience, especially in the areas of animal welfare and supporting the sustainability of agriculture. She drew attention to the importance of implementing a European quality control system not only for dairy exports to the EU but also to China and African countries. Regarding the current state and prospects of dairy trade between Ukraine and the EU, Brigitte Mizonne, Head of the Animal Products Division of the Directorate-General for Agriculture and Rural Development, noted that the EU welcomes the initiatives of Ukrainian dairy to join the EU single market. “Ukraine currently ranks 21st in the world in terms of milk production. After joining the EU, it will take 8th place among the EU member states in this indicator,” she said. Ms Mizonne recalled the tasks that are common to both Ukraine and the EU – attracting the younger generation to work in the agricultural sector and increasing the attractiveness of farming. In addition, she analyzed the issue of the competitiveness of Ukrainian dairy products and the prospects for the development of the European dairy market.
Government negotiations on European integration are ongoing. Taras Vysotsky, First Deputy Minister of Agrarian Policy and Food of Ukraine, and Oksana Osmachko, Deputy Minister of Agrarian Policy and Food of Ukraine, informed the participants of the meeting about their progress. Taras Vysotsky noted that the issue of quotas for dairy products has not yet been raised in the negotiations, which means that there is a chance to prolong and maintain a free trade regime for this type of product. Oksana Osmachko noted the active participation of associations in developing decisions related to the industry and spoke about the stages of preparation for the screening of the level of compliance of Ukrainian legislation with EU legal norms, the report on which will be considered in September of this year. She reported that 82% of the relevant legislative acts have already been adapted. The active involvement of business associations in the European integration processes was also noted by Volodymyr Kusturov, Deputy Head of the State Service of Ukraine for Food Safety and Consumer Protection, who said: “We are ready to adapt our control and quality systems to European requirements. The dairy sector is one of the most responsible sectors in our agriculture. It reacts very quickly and adapts to changes. I believe that the Ukrainian dairy sector is not a competitor but a reliable partner of the European Union.”
The meeting ended with a review of the practical steps necessary to develop the Roadmap. Mark Gramberger, Managing Director of Prospex International, presented the sequence of work that must be performed during its development. The first step has been taken towards forming a vision of the Roadmap, which should become a guide for Ukrainian dairy sector on the path to European integration.
The Roadmap for EU Integration of the Ukrainian Dairy Sector is being developed by the European Integration Committee of the Union of Dairy Enterprises of Ukraine (SMPU) in partnership with the Association of Milk Producers of Ukraine (AVM) with the support of:
• Switzerland within the framework of the Swiss-Ukrainian Programme “Higher Value Added Trade from the Organic and Dairy Sectors in Ukraine” (QFTP) implemented by the Research Institute of Organic Agriculture (FiBL, Switzerland) in partnership with SAFOSO AG (Switzerland);
• Embassy of the Kingdom of the Netherlands in Ukraine.
The source of the press release is available here.
