On February 14, the International Finance Corporation (IFC), in partnership with the Ministry of Finance of the Czech Republic and in collaboration with the Ukrainian Agribusiness Club (UCAB), organized a panel discussion in Prague titled “Agrifood. Production and Processing Strategies to Meet the Challenges of a Changing World.” This event was part of the 22nd International Conference BLACK SEA GRAIN.EUROPE by UkrAgroConsult.

The panel discussion was organized as part of IFC’s Agribusiness Resilience Project. The goal of the project is to facilitate private sector investments in sustainable and resilient food ecosystems in Ukraine and in Central and Eastern Europe.

Prior to the discussion, the panel moderator Yekaterina Foster, Operations Officer for Manufacturing, Agribusiness and Services at the IFC, presented on the key aspects of the IFC’s work and its role in supporting agribusiness, particularly in Ukraine and Central Europe. She highlighted that IFC assists companies in the early stages of project development by providing support in feasibility studies, market analysis and diagnostics. In addition, IFC offers a wide range of financial instruments, including loans, bonds, equity, and sustainability-linked financing, and helps attract other lenders to co-finance projects, enabling companies to secure the resources needed for ambitious initiatives.

An important aspect of the presentation was the criteria that projects must meet to qualify for IFC support. These criteria include the commercial viability of the project, its location in developing countries, and compliance with high ESG standards (environmental, social and governance standards). IFC takes a thorough approach to documentation, which project description, technical studies, sponsor information, and environmental and social impact assessments.

“Leveraging on three decades of IFC support to Ukraine’s private sector – with approximately $3 billion invested – the IFC is committed to supporting the country and its vibrant business community. Ukrainian agrifood producers and processors play a crucial role in ensuring global food security, and the IFC will continue to bolster the resilience of the agribusiness sector with innovative advisory and financing services,” emphasized Yekaterina Foster.

The event continued with an exchange of opinions from experts in Ukrainian and European agribusinesses, public associations and specialized organizations. They discussed the challenges and opportunities for the Ukrainian agribusiness sector in the context of EU integration, focusing on issues such as processing, trade, environmental standards, energy independence, and market competitiveness.

Oleh Khomenko, CEO of Ukrainian Agribusiness Club Association, voiced his concerns about the uncertainty surrounding the continuation of Autonomous Trade Measures (ATMs). He emphasized that this uncertainty poses significant risks for Ukrainian agribusiness, particularly when it hinges on political considerations. Khomenko noted that “If the ATMs are not extended, it may cost Ukrainian producers more than 4 billion dollars. The alternative is to implement the clause in the Ukraine-EU agreement that provides for long-term predictability of trade through reforms and harmonization of legislation. Ukrainian representatives are negotiating with the EU to strengthen their position by securing favorable cooperation terms.” 

For her part, Olga Trofimtseva, Sector Lead, Agriculture and Food Security for the Ukraine Facility Platform, added: “The uncertainty in trade relations between Ukraine and the EU is a serious challenge, but Ukraine can be a solution to many of the EU's problems, particularly in the area of food security and strategic autonomy. Instead of seeing Ukraine as a competitor or a threat to European farmers, it should be seen as a partner that can help the EU. When discussions around Ukraine's integration often focus only on agricultural conflicts, such as poultry exports, it is important to go beyond these issues and see the bigger picture.”

“Successful European integration is possible only with reforms in agro, anti-corruption and compliance with European quality standards. At the same time, the issue of subsidies remains open, as the EU does not have the means to finance a large agrarian country like Ukraine. The main thing is to adapt to the new realities and use competition as an incentive for development,” said Cezar Gheorghe, Founder of AGRIColumn.

Andrzej Szurek, Non-Executive Director of IMC, Managing Director of InnerValue discussed the conflict between Polish and Ukrainian farmers: “The essence of the misunderstanding is not only economic, but also political and emotional, especially in the context of elections in Poland. Polish agriculture, due to historical peculiarities, has many small farms that face profitability problems due to rising costs. Ukraine competes on the scale of production, while in Poland the agricultural sector is perceived as a lifestyle, not just a business. Polish food and logistics companies dealing with Ukrainian raw materials are also affected by blockades and protests, so it is important to look at the situation holistically, not just through the prism of individual sectors”.

In addition, Dmytro Radchenko, Director of Berezan Branch of Ukrainian Milk Company, spoke about the challenges his dairy farm faced during the war, including the destruction of supply chains, energy disruptions and labor shortages: “UMC’s production was saved by our biogas plant, which ensured energy independence and stability of operations. However, the main challenge even now is the shortage of manpower, as many young workers are mobilized.” He also emphasized the importance of renewable energy, in particular biogas, as a promising area for the Ukrainian agricultural sector in the context of EU integration.

The panel discussion highlighted the significant potential for development within the Ukrainian agricultural sector in the context of European integration. However, it also underscored the need for comprehensive reforms, modernization of production facilities, and a clear strategy for adapting to new market realities. Overcoming regulatory barriers, introducing innovations in processing, ensuring the stability of logistics chains, and securing access to long-term financing remain crucial aspects.

IFC together with the Ministry of Finance of the Czech Republic and UCAB are sincerely grateful to the speakers and participants for the thorough discussion and valuable opinions. By combining the efforts of business, investors, government and international partners, we can ensure the sustainable development of industry, integration into European markets and strengthening food security in Ukraine and the world.