The government approved the Food Security Strategy: in detail

23 July 2024 16:02

The Cabinet of Ministers of Ukraine approved the Food Security Strategy until 2027, which is aimed at solving a number of challenges faced by the country in the conditions of war and economic instability. This was reported by Economic Truth, which has the text of the Strategy at its disposal, reports "Komersant Ukrainian"

The main challenges identified by the government

Disrupted supply chains.
Limited opportunities to export by sea due to the closure of Mykolaiv and Kherson ports and the occupation of Mariupol.
Mined territories.
The difficulty of providing basic needs in the frontline regions.
The irrigation system in the south (500,000 ha) was destroyed as a result of the terrorist attack at the Kakhovskaya HPP.
Destruction of production facilities and reduction of production at enterprises.

The strategy notes an increase in the share of household spending on food. In 2021, it was 50.1% of revenues, and is likely to increase due to inflation in 2022-23. Ukraine aims to reduce this share to 45% by 2027 (for comparison, it is 14.3% in EU countries).

Three objectives of the Strategy

The strategy defines three key objectives.

Filling the market of agricultural products

Support for producers, in particular organic products.

Restoration of food industry enterprises.

Strengthening of cooperation with EU countries, USA, Great Britain, Canada and Asian countries, especially with China.

Ensuring the availability of food

Reducing the share of food costs.

Development of mechanisms for effective regulation of agricultural and food markets.

State regulation of prices is possible.

Ensuring the safety component of food safety

Creation and replenishment of state product reserves.

Creation of a food safety monitoring system.

Priority demining of agricultural lands.

Restoration of logistics chains.

Synchronization of agricultural legislation of Ukraine with the EU.

Combating climate change.

The budget of the strategy is UAH 4.9 billion every year until 2027, of which:

UAH 3 billion for demining;

UAH 700 million for the fight against animal diseases;

UAH 1 billion for compensation of the cost of agricultural machinery;

UAH 200 million to support farmers.

The government estimates the investment potential in the Ukrainian agro-industrial complex at $57 billion. The priority areas for investments are defined as:

Irrigation.

Elevators.

Biogas

Finished products (vegetables, fruits, dairy and meat products).

Seeds and agricultural machinery.

Products of deep processing.

As reported, the government is not going to change the National Income Strategy.