From grain to dairy: policy dialogue in Ukraine

Tractor on farm harvesting commercial produce

The EBRD and the FAO-led Ukrainian Grain Working Group has provided a platform for policy dialogue in Ukraine's grain industry.

Since 2011, the EBRD and the FAO-led Ukrainian Grain Working Group – sponsored by EBRD Shareholder Special Fund (SSF) - has provided a platform for policy dialogue in the grain sector. The Ukrainian Grain Working Group, now run by the industry, can claim major results.

One achievement is the signature of a Memorandum of Understanding between the Ukrainian Ministry of Agrarian Policy and Food and the grain industry that requires the Ministry to provide prior notification to and engage in consultation with the industry in case of possible export restrictions.

Another result is the increased efficiency in state testing requirements to certify grain without delays, which greatly facilitates grain transportation and exports at peak times.

Attracting investment

Policy dialogue activities leveraged investments in the grain sector from the private sector and enabled approximately €500,000 million of investments from the EBRD alone. The EBRD and its clients have invested in primary production of grain and oilseed, and in infrastructure improvements.

At the EBRD-FAO Dairy Market Forum, held in Kiev in May 2013 and sponsored by the Central European Initiative (CEI), the association of Milk Producers of Ukraine, jointly with the Union of Dairy Companies Association and Ukrmolprom Association and the Ministry of Agrarian Policy and Food of Ukraine (MAPFU), demonstrated their shared interest in launching a public-private dialogue in the Ukrainian dairy sector.

Following by example

Following the example of the Ukrainian Grain Working Group, the Forum participants requested from the EBRD and FAO technical and financial support for a regular Dairy Market Working Group. The MAPFU established the Working Group on the Milk Market in June 2013.

Replicating the success of the Grain Working Group, this Working Group could become a driving force for the industry’s development.