Business news from Ukraine

Ukrainian agrarians opposed possible abolition of Ministry of Agrarian Policy

14 November , 2022  

Representatives of Ukrainian agrarian business are asking President Volodymyr Zelenskyy and Prime Minister Denys Shmyhal not to allow the merger of the Ministry of Agrarian Policy and Food, the Ministry of Economy and the Ministry for Strategic Industries into a single executive body – the Ministry of Economic Development of Ukraine.
According to the web-site of the Ukrainian Agribusiness Club (UCAB), agricultural sector is vital for the country’s economy, and therefore it is logical and necessary for business and society to have a specialized central authority responsible for the development of agricultural policy, restoration of the agricultural sector after the war, ensuring the volume of agricultural production and supply of agricultural products to the world markets.
According to her data, besides UCAB, the appeal was also signed by the All-Ukrainian Agrarian Forum, the Agrarian Union of Ukraine, the All-Ukrainian Agrarian Rada, the Union of Poultry Farmers of Ukraine and the Ukrainian Agrarian Confederation.
“Ukraine is a state with a multiform economy, and agriculture and agribusiness are vital for ensuring economic recovery, food security, stability of the national currency and social protection of the population. The weight of Ukraine’s agricultural sector has increased significantly since the beginning of the full-scale invasion of the Russian Federation. The role of Ukraine as an agricultural state is noted by the world leaders and organizations”, – stresses the appeal.
It is noted that agribusiness supports the creation of a government center, which will report to the prime minister and will coordinate strategies and programs to restore the Ukrainian economy.
“The abolition of the Ministry of Agrarian Policy will lead to negative consequences both in the agri-food sector and in the state economy as a whole, and will also cause concern of foreign partners and threaten the establishment of export supplies of Ukrainian food to countries in need,” the statement says.
UCAB also refers to international experience, according to which most countries with a developed agricultural sector have a separate central executive body responsible solely for shaping their agricultural policies. These include, in particular, the U.S., Canada, Turkey, almost all EU member countries (except Austria), which have authorities responsible solely for agriculture and food.
“Taking into account the above mentioned, the leading public associations of agroindustrial complex urge to take into account the opinion of the agrarian sector when optimizing the number of central executive authorities, ensuring the existence of one separate specialized body of state power of national level, which will be responsible for provision of food security and ensuring effective functioning of agrarian sector, especially in postwar period”, – points out the statement of agribusiness representatives.
As reported the day before Ukrainian media reported on the possible merger of Ministry of Agrarian Policy with Ministry of Economy and Ministry of Agrarian Policy to Ministry of Economic Development.
Thus, it was reported that at a meeting of President Zelenskyy with members of the government on November 8, a relevant concept of consolidation of ministries in Ukraine from 20 to 14.
Earlier, in June 2022, the media reported plans to merge the Ministry of Agrarian Policy with the Ministry of Economy into the new Ministry of Economic Development and Innovation by the end of 2022. It was also planned to generally reduce the number of ministries in the country from the existing 20 to 12.
In August 2019, the Verkhovna Rada merged the Ministry of Agrarian Policy and the Ministry of Economy into the Ministry of Economic Development, Trade and Agriculture. However, in 2020, the Cabinet of Ministers reconstituted the Ministry of Agrarian Policy by canceling its merger with the Ministry of Economic Development, Trade and Agriculture and set the number of employees at 203, after which the Ministry again began to operate as a separate structure.