Business news from Ukraine

Business news from Ukraine

Only 24% of pig producers support EU accession

24% of the pig industry representatives consider joining the European Union to be positive, as it will open access to new markets with more transparent rules and conditions, according to a study conducted by the Pig Producers of Ukraine in cooperation with the Food and Agriculture Organization of the United Nations (FAO) and the European Bank for Reconstruction and Development (EBRD).
Analysts noted that such a low percentage of positive responses is due to the fact that the majority (40%) of respondents associate EU accession with the loss of their competitiveness, 26% fear tighter regulatory requirements, and 10% say the sector is technically and financially unprepared given the large amount of investment needed to improve the production system in accordance with all European requirements.
“Under such conditions, 36.2% of pork producers who took part in the survey are convinced that for a faster and easier transformation of the industry in accordance with EU requirements, preferential loans, grants, other compensations and access to financial resources are needed. Others believe it is necessary to remove the corruption/bureaucratic component in the processes of obtaining permits and certificates, the high share of the black market, overcome individual difficulties of operators, as well as economic and military challenges,” the industry association explained.
The survey involved pork producers who provide about 80% of the industrial supply on the market. Their total livestock is more than 2 million heads.

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EU wine production to decline by 3% due to weather and rising costs

Wine production in the European Union will decline by about 3% this year due to unfavorable weather conditions and rising costs, agricultural lobbying group Copa-Cogeca predicts.
Wine production in the EU this year will amount to about 144 million hectoliters (hl), the group said in a press release.
Italy is expected to become the largest wine producer in Europe with 41 million hectoliters (up 7%), Spain will take second place (38.1 million hectoliters, up 18% year-on-year), and wine production in France will fall by 22%, which will cause the country to fall back to third place with 37.4 million hectoliters.
The outgoing year was marked by unpredictable weather and the effects of recent droughts in Europe, the report says. Meanwhile, vineyard diseases have become less of a problem than in 2023, experts say. In addition, rising prices for glass, gasoline, transportation services and fertilizers have significantly increased producers’ costs, and high interest rates have made it difficult to access the loans needed to grow the business.
“The European wine market is going through a difficult time, affected by high production costs and the situation on international markets,” said Luca Rigotti, head of the Wine Working Group at Copa-Cogeca. – “However, I am confident in the resilience and entrepreneurship of our farmers.

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EU calls for mobilization of private investment in areas critical to Ukraine’s recovery

At the first “EU-Ukraine Investment Conference” in Warsaw on Wednesday, the European Union called for mobilizing private investment in areas critical to Ukraine’s recovery, the European Commission (EC) said.
“Under this call, EU businesses, including joint ventures or consortia involving both European and Ukrainian companies, are invited to submit proposals by March 1, 2025. Proposals will be reviewed and linked to the most suitable investment projects financed by the Investment Framework for Ukraine, which is an integral part of the EU’s EUR 50 billion Ukraine Fund,” the EC communiqué says.
“Ukraine’s recovery requires both public funding and partnerships with the private sector. By combining these efforts, we can maximize investment, support the country’s recovery and its gradual integration into the EU single market. Indeed, facilitating private sector participation in Ukraine’s recovery and reconstruction will be key to its success,” said Oliver Vargey, European Commissioner for Neighborhood and Enlargement Policy.
The European Commission named the priority areas of the EU’s call: development of sustainable energy solutions, including renewable energy projects and modernization of existing energy infrastructure; investment in processing of critical raw materials – key minerals and resources needed for high-tech industries and renewable energy technologies; revitalization and modernization of the manufacturing and production sector to increase industrial competitiveness; support for construction and reconstruction of Ukraine; and support for the development of the energy sector.
The two-day conference, according to the EC, brought together more than 5,000 participants, including companies, banks and investors from Ukraine, the EU and other countries, to mobilize private investment in the recovery, reconstruction and modernization of Ukraine.

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Exports of honey from Ukraine to EU amounted to 45.8 thousand tons in 2023

In 2023, Ukraine exported 45.8 thousand tons of honey to the European Union, with 28% of imports of this product from Ukraine, said Olena Dadus, Deputy Director of the Agrarian Development Department of the Ministry of Agrarian Policy and Food.
“The markets of the European Union are key for honey exports, as Ukraine is the second largest exporter of honey to the EU, accounting for 28% of all imports of this product by the bloc. According to the Register of Export Capacities, about 72 Ukrainian enterprises are engaged in the supply of honey abroad,” the press service of the Ministry of Agrarian Policy and Food quoted her as saying at the Honey Forum ”European Integration of the Ukrainian Honey Industry: Challenges and Opportunities.”
According to the State Customs Service and the State Statistics Committee, honey exports in 2023 amounted to 55.4 thousand tons worth $121.4 million, including 45.8 thousand tons (93.6% of total exports) worth $94.9 million. At the same time, in the first half of 2024, honey exports to the EU amounted to 40.6 thousand tons worth $70.7 million.
The Ministry of Agrarian Policy recalled that the main countries of honey export in 2023 were the European Union (Germany, Poland, Spain, France, Belgium, Romania, Italy, Hungary, Greece) and the United States.
As reported, as part of Ukraine’s association with the European Union, Ukrainian companies were entitled to supply 18.507 thousand tons of honey to the EU market free of duty starting June 5, 2024. After this volume was exhausted, the EU resumed quotas on August 21. From January 1, 2025, and until June 5, 2025, a new tariff quota will be introduced, which corresponds to 5/12 of the threshold set for the emergency braking.

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From November 10, new entry rules will come into force in EU

On November 10, new border crossing rules will come into force in the EU countries – a new IT system EES (Entry/Exit System) will start working.
EES will record the entry and exit of all foreigners, including citizens of non-EU countries, including Ukrainians. Instead of stamps in the passport, facial scanning and fingerprints will be used. Biometric data will be taken once during the first entry and stored in the system for three years.
The introduction of the system will not affect the visa-free regime.

Ukraine can become EU member by the end of 2029 – European Commissioner for Enlargement

Ukraine can become a member of the European Union (EU) within the next five years, provided that it implements all the necessary reforms, European Commissioner for Enlargement Oliver Varghese said at a press conference in Brussels on Wednesday.
According to Deutsche Welle, Varghese said that additional tools have been created for Ukraine, Moldova and the Western Balkans to “help them accelerate reforms.”
“These tools are called the Growth Plan, the Ukraine Plan, depending on the country. And with the help of this plan, we have made it possible for the Western Balkans, Moldova, and Ukraine to complete reforms in order to prepare everything and become an EU member by the end of the next European Commission mandate,” he said.
On September 30, a report on EU enlargement was presented in Brussels, which describes the progress of the candidate countries.
At a summit in Brussels on June 23, 2022, the European Council granted Ukraine candidate status in the EU. Kyiv has to implement several important reforms related to the rule of law, oligarchs, and corruption, among other things.