The Ukrainian agricultural sector is 60-70% export-oriented and simultaneously export-dependent. This is a reality, as global consumption relies on Ukrainian agro-exports, stated Taras Vysotsky, the First Deputy Minister of Agrarian Policy and Food.
"Indeed, 60% to 70% of Ukrainian agricultural products are exported, which makes the Ukrainian agricultural sector export-oriented. We can produce far more than the domestic market consumes. Therefore, the Ukrainian agricultural sector is also export-dependent. The reality is that global consumption is influenced by Ukrainian agricultural exports. Thus, this relationship is mutual," he said during the online discussion "Three Years of the Great War: Current State and Prospects for the Recovery of Ukraine's Agricultural Sector."
Vysotsky reminded that in the early months of Russia's full-scale invasion of Ukraine in 2022, and until mid-2023, when the temporary "grain initiative" supported by the UN was canceled, Ukrainian products were absent from the international market, leading to a sharp rise in global food prices.
He cited UN data indicating that food prices increased by an average of 35% in hard currencies—euros and US dollars—over the first half of 2022.
"Such inflation of 35% globally is significant. This means that virtually all countries had to pay more for food. In Western countries, where the average share of food expenses is 7-10-12% or more, it rose to 10-15-80%. Meanwhile, in African and Southeast Asian countries, where the average expenses are 50-60-70%, they increased to 70-80-90%. In some places, food became unaffordable," explained the First Deputy Minister.
He added that this situation prompted the initiative of the President of Ukraine, "Grain from Ukraine," which facilitated the supply of various Ukrainian agricultural products to countries in Africa and the Middle East. Currently, the situation regarding food prices has normalized globally, largely due to the Ukrainian maritime corridor, which has been operating steadily since December-October 2023.
"Ukrainian agriculture and international food security are interconnected. Unfortunately, this understanding emerged from the horrific challenges of war. But the whole world has realized that Ukrainian agriculture cannot thrive without exports. Global food security cannot be guaranteed and stable without the contribution of Ukrainian agricultural production," Vysotsky concluded.