Resource information
The agri-food sector is an important
part of the Ukrainian economy. Agriculture could make an
even larger contribution to economic growth and the vitality
of rural areas in Ukraine than is currently the case.
Ukraine has the agro-climatic potential to be a major player
on world agricultural markets. Agricultural competitiveness
in Ukraine also suffers from inadequate systems to test and
document food product quality and food safety.
Ukraine's food safety control system is complicated and
characterized by fragmented and often overlapping
jurisdictions. Many standards applied in Ukraine are
inconsistent with World Trade Organization (WTO) provisions,
with standards established by the responsible international
bodies and with accepted practices in international trade.
Without improvements towards an efficient and
internationally recognized food quality and safety control
system, Ukrainian agriculture will find it increasingly
difficult to sell into international markets and its
products will not be able to command top prices. The ban on
Ukrainian meat, eggs, fish, cheese, milk and butter imposed
by Russia in mid-January 2006 provides an example of the
disruptions that can result. This negative impact on
competitiveness will be increasingly acute for more
perishable products, higher-processed products and products
that combine different agricultural raw materials - in other
words many high-value added products. Policy reforms and
investments could greatly increase the competitiveness of
Ukrainian agriculture. In the policy sphere, greater
restraint should be exercised in the area of trade, market
and price policy. Ad hoc intervention on agricultural
markets should be reduced. Accession to the WTO is an
important and encouraging signal that policy makers are
willing to adopt less intrusive and more stable trade,
market and price policies. In the investment sphere,
priorities include food safety monitoring and certification
systems, trade infrastructure and logistic capacity, food
chain management, technical advisory and market information
systems, streamlined and transparent customs procedures,
land markets, and research and education institutions.
