The Minister of Agriculture believes that importing food products such as butter or buckwheat when prices are high or there is a shortage is bad policy. He points that Ukraine produces close to 17 million tons of potatoes annually but human consumption is only 6 million tons, so the rest is used for animal feed or goes to waste. According to the Minister Ukraine is fully capable of increasing production of items such as buckwheat or sugar beet to meet domestic demand. However, this same Minister is in favor of limiting domestic food price increases which could stimulate additional supply. He was particularly critical of the lack of a cold storage chain for fruits and vegetables. We understand that the Minister also forgot that Ukraine will import sugar regardless of how much it produces because under its WTO commitments it has agreed to 270kt of duty free sugar. Although over a third of Ukrainians live under the poverty line allowing in cheap food imports is clearly not part of the political agenda.

UkrAgroConsult