Sections of the Brussels political elite, already worried about farmer protests, face another hurdle: Ukraine’s potential entry into the European Union. Some are daring to ask the question, Is it still a good idea? While promising economic integration and political solidarity, a quiet tremor runs through Europe’s small, independent farms. Could their livelihoods be further squeezed by a wave of cheap Ukrainian produce?
Ukraine boasts vast fertile land and lower production costs, raising concerns that its agricultural exports could undercut European prices. This chills the already strained finances of small farmers, who are already grappling with rising production costs and foreign competition. Could lower-priced Ukrainian products push them off the shelves, jeopardizing their businesses and the very fabric of rural communities?
While access to EU grants and subsidies might modernize Ukrainian agriculture, existing EU farmers fear being left behind. Unequal distribution of support could create resentment and fuel perceptions of an unfair playing field. Smaller farms, often lacking economies of scale, might struggle to compete with their newly subsidized Ukrainian counterparts.
Currently, large commercial farms (roughly 20% of producers) take 80% of grants and subsidies, leaving the other 80%, mostly small farmers, struggling. Big producers already receive massive discounts on feed and fertilizers, leaving smaller competitors paying slightly higher prices. With larger profit margins, large agribusinesses can weather competition better and buy up the land abandoned by smaller farmers.
Over 55% of Ukraine’s land is arable, exceeding both France and Germany. Its farms are also significantly larger. In Ukraine, the average farm is over 1,000 hectares, compared to France (16 hectares) and Germany (58 hectares). Its agricultural products are its most crucial export, totaling $27.8 billion in 2021 (41% of total exports). Its top export markets include the EU, China, and India. If Ukraine gained full access to the single European market, tariffs and quotas on its agricultural exports to the EU (its largest market) would be eliminated, significantly boosting Ukrainian agricultural exports and revenue.
Access to EU grants and subsidies for agriculture could modernize Ukrainian farms, improve infrastructure, and increase productivity, making Ukrainian products even more competitive in the global market. Collaboration with EU partners would lead to knowledge transfer and technology sharing, likely improving agricultural practices, leading to higher yields, better resource management, and more sustainable farming methods.
However, increased Ukrainian exports will undoubtedly put pressure on smaller EU farmers, particularly those producing similar products at higher costs, inevitably leading to populist far-right calls for protectionist measures within the EU. The ongoing war in Ukraine has significantly impacted its agricultural production and exports, creating additional uncertainties and requiring reconstruction efforts. If Ukraine joins, this will put a strain on the EU’s agricultural budget, which already accounts for 32% of contributions from member states.
Concerns already exist about the fair distribution of EU agricultural subsidies. If Ukraine receives significant funds, existing EU farmers might feel their needs are neglected, potentially creating resentment. Integrating Ukrainian agriculture into the EU single market may require them to comply with stricter environmental and food safety regulations, which could involve additional costs and adjustments for both Ukrainian and existing EU farmers.
So, beyond the immediate economic concerns lies the spectre of political unrest. Some fear the economic cost of integration, coupled with potential social unrest in Ukraine, could fuel the flames of populism within the EU, giving ammunition to those who exploit anxieties for their own political gain. While large agribusinesses might see this as an opportunity for expansion, the potential cost to the social fabric of rural communities and the future of small-scale, sustainable farming should not be ignored.
While Ukrainian exports wouldn’t directly enter the UK market due to its non-EU status, they could still indirectly create price competition within the EU, potentially impacting UK exports to EU countries. With Ukraine potentially requiring significant financial aid and attention during integration, the EU might divert resources and focus away from other issues, potentially neglecting existing partnerships and trade agreements with the UK. This could leave UK farmers feeling less supported and with fewer opportunities for collaboration. However, it could be good news for some small UK farmers. If Ukraine prioritizes larger-scale, export-oriented agriculture, this could create a niche for UK farmers specializing in high-quality, niche products or sustainable practices, appealing to specific consumer segments within the EU.
But despair need not be the harvest reaped. By focusing on responsible integration, efforts can lead to a bountiful future. This can only be achieved by prioritizing support for small farmers, fostering knowledge sharing and collaboration, and ensuring transparency in policy decisions. The integration of Ukrainian agriculture could be a catalyst for innovation, shared prosperity, and a more resilient food system – but only if they plant the seeds of careful planning, targeted support, and open communication. The final seed is yet to be sown, and the choice of its type rests not just with policymakers, but with all stakeholders who hold the future of European agriculture in their hands. Let us hope they choose wisely, for the sake of all small farmers, consumers, and the very land that nourishes us all.
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