$15.5 m EU-funded project for supporting agricultural sector in Ukraine

05 / 01 / 2023

By Marwa Nassar - -

A $15.5 million EU-funded project aims to support the Ukrainian agricultural sector that was disrupted over the Russian-Ukrainian crisis.

Rural households, smallholder farmers and small-scale agricultural enterprises will benefit from the project which will be implemented by the Food and Agriculture Organization of the United Nations (FAO).

FAO will work on supporting the functioning, reinforcement and strengthening of value chains in agriculture, fisheries and forestry, and their adaptation to the wartime conditions.

The project will focus on supporting producers in Lvivska, Ivano-Frankivska, Zakarpatska and parts of Chernivetska oblast with matching grants for on-farm and value chain-based investments coupled with extension and advisory support.

“The EU funds for this FAO project aim to re-establish or reinforce pre-war level functionality of agricultural value chains. This is needed to meet the food requirements of local and displaced populations in the west and address food insecurity elsewhere in the country in the immediate and short term, and will be critical to averting a food crisis into 2023,” said Christian Ben Hell, the Sector Manager for Agriculture at the EU Delegation to Ukraine.

The food security situation in Ukraine has deteriorated rapidly following the eruption of the war on 24 February 2022, which has caused extensive destruction of crops, agricultural and other civilian infrastructure, and disrupted both supply and value chains.

FAO’s recent nationwide assessment on the impact of the war on agriculture and rural households reveals that one in every four of the 5 200 respondents has reduced or stopped agricultural production due to the war. Through this EU-funded project, which initially started in February 2021 with a preparation phase but then was put on hold due to the war to be repurposed to meet the current needs, in March-May 2022 emergency agricultural support was provided to over 6 000 rural households. This assistance covered the urgent population’s need for agricultural inputs, cash, vegetable seeds and seed potatoes to continue food production for household consumption.

“The testimonies of the individuals and families who I met during my visits to the newly accessible areas confirm the urgent need for immediate support towards restoring their household capacities and avoiding dependence on humanitarian assistance. At the same time, it is imperative that the Government is supported in its efforts to develop the agriculture sector and to strengthen and diversify value chains,” said Pierre Vauthier, Head of FAO Ukraine country office.