Taras Kachka, Ukraine’s trade policy representative, explained in a commentary to the Financial Times that the Ukrainian government is prepared to accept trade restrictions with the European Union to ease political tensions with Poland.
At the same time, Kyiv expects the EU to impose a ban on Russian agricultural imports. This aligns with Brussels’ proposed measures to restrict the import of eggs, poultry, and sugar from June 2024 to June 2025, along with permitting individual countries to limit their markets to Ukrainian grain, except for continued transit to other nations.
Meanwhile, protests by Polish farmers persist. For instance, on March 6, a sizable rally unfolded in Warsaw. Local farmers called for the annulment of the European Green Deal and limitations on food imports from Ukraine. The Green Deal aims to diminish greenhouse gas emissions stemming from human activities. Consequently, European farmers face specific constraints on the use of agricultural chemicals. Moreover, to safeguard ecological diversity, they are required to leave at least 10% of their land uncultivated.
“I believe the primary reason behind the protests is the drop in global grain prices. The second factor is the influx of Ukrainian grain into the Polish market. Although there’s currently a ban, we shouldn’t overlook the impact of these inflows on the market a year ago. The third point driving the protests relates to the European Green Deal,” explained Volodymyr Lapa, an agricultural expert and officer in the Armed Forces of Ukraine, during the Setting the “Agro-Export Negotiation Position with Poland” discussion panel. “It’s clear that certain factors are being exploited by our enemies. The differing treatment of Russian and Ukrainian grain in Poland, in my view, stems from the fact that Russia has been, is, and will remain outside the EU. On the other hand, Ukraine is gearing up for EU accession. It’s all about the terms under which these markets are ready to collaborate.”
It’s important to recognise that the setup of Ukrainian agriculture differs significantly from Poland’s. In Poland, there are mostly household farms, small family-owned operations, with fewer family businesses, and even fewer large agricultural companies. Ukraine’s structure is quite distinct.
“We have numerous agricultural holdings, medium-sized farms, and the fewest family farms. Any Ukrainian farmer will tell you that cultivating grain on a 13-hectare plot, the average size of a farm in Poland, is not viable. The return on investment just doesn’t add up.”
“At the same time, the Polish government has consistently advocated for the interests of small farms despite their reliance on state subsidies. Furthermore, Poles do not view this as an economic downside; rather, it’s an advantage in developing rural areas. However, I believe that even without Ukrainian grain in the Polish market, protests would still arise due to the current global prices. In Berlin, for instance, we witness similar farmer demonstrations almost every year,” says Volodymyr Lapa.
The farmers’ protests are forward-looking. Poles are worried that as Ukrainian businesses integrate into European markets and become able to produce more efficiently and affordably, they will begin to edge out local farmers. To quell the large-scale demonstrations, Ukraine certainly needs to make concessions.
“In reality, we still don’t fully grasp all the complexities of the issues driving the protests among Polish farmers. So, reducing tension and stating that Ukrainians are open to dialogue is the first step. However, I don’t believe that the decision to impose restrictions will have a profound impact on Ukraine. It’s important to consider that our primary agricultural flows go through ports,” explains economist Dmytro Boyarchuk to The Ukrainian Week.
It will be a long road to find ways to coexist with Polish businesses in the European market. However, in the current situation, we shouldn’t forget that our bigger problems are still caused by our northern neighbour, Russia, and not the Poles.
“The issue here is that the reduction in the price of agro-exports affects our earnings more significantly than the border blockades by the Poles. Officials, although not publicly, say that Polish protests have a greater impact on reducing imports than creating problems for exports. So, during the protests, imports noticeably decline, which reduces pressure on the currency. This is, of course, a dubious but still positive effect,” explains Dmytro Boyarchuk.
