EU accession for Ukrainian agribusiness means no challenges, only 'costs' of modernization – Kachka

Ukraine is ready to discuss transition periods for the gradual phasing-out of EU agricultural subsidies in order to speed up the process of gaining EU membership, Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine Taras Kachka said in an interview with Ukrainska Pravda.

"Perhaps, in the part concerning integration into the internal market, this may even be to our benefit, but no steps toward any alternatives, symbolic things or other things will be taken by anyone," he said.

According to the trade representative, Ukraine is ready to follow Poland’s path, where farmers began receiving 100% subsidies only ten years after accession, while for the Ukrainian sector this period "can be completed in 15 years," Kachka said Kyiv does not plan to spend years agreeing on all details before signing an agreement, but instead proposes a mechanism of gradual entry after official accession.

The official explained that agriculture is always a "sensitive point" in negotiations and cited the example of the Strawberry Regulation, which appeared in the EU after physical attacks on Spanish products during the country’s integration. However, according to him, after discussions with Polish colleagues in 2023, "a certain initial emotional sensitivity" has already been overcome, and the parties are now looking for a balance on this issue, similar to "adjusting a complex clockwork mechanism."

"We will find it, because everyone sees both the challenges and the opportunities. And there are in fact very many opportunities, because Ukraine contributes a lot of positive things to the European Union’s food systems," the deputy prime minister said.

Kachka paid special attention to the competitiveness of Ukrainian producers and said that the experience of the past 20 years of integration is optimistic. Using tomatoes as an example, he explained that the Ukrainian range, from greenhouse to organic varieties, remains competitive and tasty, despite concerns about pressure from European retail chains. He also noted the successes of the dairy sector, which is actively increasing exports of butter and powdered milk.

"We do not export that much kefir, but the main exporter of kefir to the European Union is Ukraine. This shows that even with such demanding perishable goods, we are capable of working," Kachka said.

According to him, due to the blockade of traditional logistics routes during the war, Ukrainian companies have reoriented themselves toward the European market and are ready to meet the EU’s strictest requirements. The government official is convinced that Ukraine is already effectively part of the Union’s internal market, while businesses see the need to invest in modernization as necessary costs.

"We recently discussed this with agribusiness, and one of Ukraine’s largest companies said: these are not challenges, these are only costs. You pay for some equipment, but then you have the best market, where you do not have to sell your products for next to nothing," the deputy prime minister said.