Annual losses of $2 bln possible as Ukraine's agriculture shifts to EU plant protection product rules - deputy minister

MOSCOW. April 8 (Interfax) - The transition of Ukrainian agriculture to European standards regulating the use of plant protection products will cover around 10 million hectares, or 40% of the country's total sown area, which could result in the sector's annual losses of at least $2 billion a year, Ukrainian media reported, quoting Deputy Economy, Environmental Protection and Agriculture Minister Taras Vysotsky as saying.

The stage-by-stage alignment of Ukrainian laws with European Union regulations involves removing risky active ingredients from the market and introducing integrated plant protection measures, Vysotsky said. This will lead to a temporary decline in yields by up to 20% on average, including a decrease of 13% for corn, and up to 26% for sunflower.

As for the growth of production costs estimated at 70 euros to 150 euros per hectare, it is important to understand it is not driven solely by more expensive plant protection products, he said. Rather, it is an integrated effect caused by the shift to more costly or biological alternatives and additional process operations, as well as, to a considerable extent, by the timely reduction in yields during the transitional period.

The main message of the reform is not about higher production costs but a transition to a competitive model of agricultural production, providing Ukrainian producers with full access to the EU single market, Vysotsky said.

As reported, full adaptation of Ukrainian agricultural legislation to EU standards is to be completed before 2028. In 2026-2027, Ukraine will focus on implementing regulations on food safety, animal welfare and the sector's environmental sustainability.