In case of the EU’s enlargement and Kyiv’s eventual accession, as well as the development of a roadmap for 2028-2034, let’s analyze key indicators for the main agricultural positions in Ukraine and the EU.
According to Farm Europe, the competitiveness of Ukraine and the EU in this area differs by 19-39%, depending on the sector. If Kyiv became part of the EU, the country would account for 20% of European grain production, 49% of corn, and 15% of wheat. Between 2020-21 and 2024, Ukraine’s grain imports to the EU increased by one and a half times. Spain, Italy, and the Netherlands are the main gateways for Ukrainian grain exports, accounting for 63% of European imports from Ukraine. Spain doubled its imports of Ukrainian grains. In 2024, 36% of European imports of white sugar came from Ukraine. While in 2022, it was 30%.
“Ukraine is a competitive agricultural country. Corn is 25% cheaper and wheat is 39% cheaper than in Europe. According to the State Statistics Service of Ukraine, in 2024, the country used more than 40 million hectares of land for agriculture. Ukraine is currently the largest agricultural country on the European continent. Its main crops are cereals (corn, wheat, barley), potatoes, as well as sunflower seeds and sugar beet,” – said Oleksandr Korenitsyn, Grain Market Analyst.
WHEAT, CORN AND SUGAR BEET PRODUCTION IN THE EU AND UKRAINE IN 2024:
The competitiveness of the Ukrainian sugar sector really differs from the European one. This is due, in part, to the fact that Ukraine has agricultural holdings that cultivate 93% of the sugar beet area, and the average sown area is 23,700 hectares (1763 times more than in the EU). Thanks to Kyiv, Europe has significantly increased its stocks: in 2024, sugar exports to the EU increased by 233% compared to 2022.
Meanwhile, grain production is not so dominated by large agricultural companies: 51% of production is carried out by structures with an area of less than 1 thousand hectares, 22% of production is carried out by structures with an area of more than 3 thousand hectares. The share of wheat exports to the EU amounted to 55% in 2024 (30% in 2021).
“As for rapeseed, a few years ago the cost of its production in Ukraine was 1.5 times lower than in France. Compared to the average of 2021-2023, the production of rapeseed and rapeseed oil in Ukraine in 2024 increased by 37% and 104%, respectively (export increased by 27% and 98%, respectively). If Ukraine joined the EU, it would also be among the leaders in rapeseed production in Europe. By the way, the EU was the largest importer of Ukrainian rapeseed products even before russia’s full-scale invasion. However, rapeseed imports have increased, and now the EU receives 93% of Ukrainian exports, compared to 87% in 2022/23,” – said expert Oleksandr Korenitsyn.
And in 2024, Ukrainian sunflower production was more than in entire EU. If Kyiv became part of the European Union, it would be among the leaders in the production of sunflower seeds and sunflower oil in Europe. Ukraine has been one of the main suppliers of sunflower oil to the EU for ten years.
ADVANTAGES OF THE UKRAINIAN AGRICULTURAL SECTOR OVER THE EUROPEAN ONE:
Among the features of the Ukrainian agricultural sector are large agricultural holdings that seek to maximize the return on invested capital. In addition, labor costs are significantly lower in Ukraine. Moreover, 45% of the area is fertile black soil, so the use of fertilizers is 1.5 times less than in the European Union. And, as Oleksandr Korenitsyn noted, the consumption of pesticides for all crops combined is half that of the European Union.
The only and main factor that currently prevents the Ukrainian agricultural sector from functioning fully is, of course, the full-scale russian invasion. One of the kremlin’s aggressions against Ukraine goals is to take control of the EU food security in particular and the world one in general. Therefore, it is extremely important not only for Ukraine but also for all countries, including European ones, to stop russia.
Tags: European Union, full-scale russian invasion, Ukraine’s accession to the EU, imports, Ukrainian agriculture, grain, sugar, wheat, Oleksandr Korenitsyn, EU enlargement, sugar beet, corn, European market.
