In Ukraine, as in the world, there is no sphere left that the coronavirus pandemic has not touched. The agricultural industry is no exception.

This opinion was expressed by the chairman of the OS “Agrarian Union of Ukraine” Gennady Novikov.

He noted that quarantine and the spread of the disease revealed weaknesses in the system of government, the economy, business, and the social sphere. However, the situation carries not only an inevitable crisis, but also a number of opportunities.

“Now more than ever, it is a good opportunity for every business owner and manager to analyze the mistakes made and weaknesses. Stressful situations make the brain work faster, and any restrictions make people more flexible and inventive. So why not take advantage of this? ” – explains the expert.

According to Gennady Novikov, if we consider the problem on a large scale, then from an economic point of view, the negative impact on agribusiness is now almost the smallest, because enterprises that produce or sell food products are one of the few that continue to operate normally.

 

 

“There were tangible difficulties with the marketing of products except for fruit and vegetable producers during the closing period of food and wholesale markets. On the other hand, competition has declined (including due to import complications), and prices for these products have increased, and the farmers themselves have begun to think about cooperation, in particular with regard to logistics, ”he adds.

The expert emphasized that some manufacturers switched to online sales and began to sell their products through pages on social networks, announcement services, etc., and this implies the organization of their own delivery.

 

“I think this will not have a significant impact on last year’s harvest, however, this trend has a chance to strengthen in the new season, especially since the intermediary link has dropped out of the producer-consumer chain,” he explains.

Novikov notes that the sowing issue during quarantine worries everyone.

“Here problems arise in those farms that did not stockpile fertilizers, seeds, plant protection products or did not prepare equipment for field work, because now there are problems with supplies. And yet, most farmers have long made it a rule to prepare for the spring sowing in the fall, and whoever is not used to such a work planning, I think, will think about it in the future, ”the expert notes.

According to his forecasts, the problem with the provision of agrochemicals may still arise later if the quarantine is extended or their supplies are not established.

“As for the sowing organization itself, it is also somewhat easier for the agricultural sector than for many other sectors, because most employees work in a field where the risk of infection is minimal,” he explains.One of the biggest problems during the quarantine period, according to Novikov, is the actual lack of funding. Today, the forward programs of the State Food and Grain Corporation (SFGCU) have stopped. They work de jure, however, the employees of the institution were transferred to remote work, while the procedure for signing documents was not changed. Doubtful feedback comes from farmers and the program “Affordable loans 5-7-9%.”

“It is difficult to overestimate the negative impact of the pandemic on the domestic economy as a whole and on the agribusiness in particular, however, I admit that after overcoming the crisis we are waiting for a new intensive round of development. I am convinced that many farmers will think about cooperation, and not only with regard to logistics, but also storage and marketing. Many processes that have now been transferred to online will remain there, and the business will become more flexible and more stress-resistant. All this, of course, in the event that it is now possible to draw the right conclusions, ”concluded Gennady Novikov.