Toespraak van staatssecretaris van Dam bij Business Forum Nederland-Oekraïne

Toespraak | 30-03-2016

Your Excellencies, Ladies and Gentlemen,

As the Minister of Agriculture it is my honour to cap this long day of talks and presentations with a number of closing remarks. And it is my pleasure to do this alongside my Ukrainian colleague Minister Pavlenko.

This is the second time in half a year that he and I meet. For those of you who didn’t already know, Minister Pavlenko is quite familiar with the Netherlands. He did his MBA at Nyenrode University and worked at ABN AMRO and Damen Shipyards.

Minister Pavlenko and the rest of the Ukrainian government are in the process of reforming the country’s political, economic and agricultural system. Their challenges are substantial and their decisions may shape Ukraine’s future for decades to come.

I am impressed with the progress they have made. And I have been touched by the spirit of the Ukrainian people, which is the reason we are here today. Because they took to the streets to protect their chance to do business with us and that took a great deal of courage. Ukraine and its people paid a high prices, but what they did was justified. No one has the right to deny someone the possibility of a better future.

Which is why I am proud of the contributions that the Netherlands can make to this future. Especially in the areas of food and agriculture, 2 fast-growing industries. Ukraine’s agrifood industry accounts for around one-third of all jobs in the country and some 30% of all exports. And Ukraine has been blessed with 42 million hectares of fertile, arable land and 30% of the fertile black earth in the world! Ukraine has rightly been known as The Breadbasket of Europe.   

Impressive facts, particularly when you consider the vast potential for growth. International experts believe that Ukraine’s agricultural production can be doubled and its value chains vastly improved. How? Key to this is to innovate. By implementing new technologies and IT systems and by embracing the latest scientific insights and best practices. For example by introducing new systems of livestock and arable farming. Or by increasing and modernizing the country’s processing capacity.  

But there is more at stake than just increasing the quantity and quality of food production. Global population growth and climate change mean that Ukraine, like all other countries, has to move to a more sustainable approach to agriculture. One that is able to feed more people, but with a lower impact on the environment and natural resources.

The Netherlands can play a role in all these areas. We are the world’s second-largest exporter of agrifood products and a leader in agrifood innovation and efficiency. We excel at aligning stakeholders across the value chain and incorporating expertise from industries such as IT, energy and logistics. Dutch companies are very eager to partner with their Ukrainian counterparts.

Later today, for example, a consortium of Ukrainian and Dutch companies will sign a contract for the development of Dairy Training Centers in the Ukraine. Our governments, research institutes and the private sector will work together on building a sustainable infrastructure for the transfer of knowledge and education.

This is much needed. Some 80% of Ukrainian dairy production still occurs on small household plots, which explains why the average milk quality is lower than the EU’s and why milk production per cow is only half the Dutch average. I am confident that our technical assistance can be of value to Ukraine’s dairy industry.

There are many other areas in which Dutch companies can share their expertise with Ukrainian partners. To encourage smart agriculture, for example, which uses precision farming. Or to develop a bio-based economy, which would strengthen the country’s energy security and help it monetize its vast streams of agricultural waste.

Agrologistics is another area in which the Netherlands and Ukraine are natural partners. To help it triple exports, Dutch companies are helping Ukraine to optimize the use of multimodal transport and improving the country’s cold chain infrastructure. Meanwhile, the Port of Rotterdam will continue to be Ukraine’s key partner for the export of commodities like cereals and sun flower oil, and hopefully soy oil and meal in the future.

Ladies and gentlemen,

For these and other opportunities to materialize, it is essential that Ukraine maintains a healthy business and investment climate. I am confident that today’s business forum has shown that this is a priority for the Ukrainian government. And that the Association Agreement will contribute to this, by lowering tariffs and by encouraging reforms. The new Food Law, for example, ensures that Ukraine has adopted EU food safety and quality control standards.

In addition to a good climate, what is needed for Ukraine to realize its potential are entrepreneurs with guts and vision. Businesses who invest in growth, in innovation and in partnerships across borders. I hope today’s business forum has shown you what is possible and that it will inspire you to take action. Especially in areas like agriculture, food processing and logistics. But also in growing industries such as IT, energy and infrastructure. I know that both our governments will support your ambitions.

I also hope that the wider Dutch population will support the people of Ukraine. Because next week, the Dutch vote on the association agreement. This vote is about many things and one of them is freedom. Something the Dutch feel passionate about. Because the Netherlands was established in the 17^th century after we refused to let Spain decide who we could do business with. And so we fought for our independence, our freedom, our civil rights. And look at how much wealth and wellbeing it has brought us!

Now, more than 400 years later, courageous Ukrainians are faced with a similar challenge. They have stood up against domination and fought for their freedom and their prosperity. Looking at the state of the world today, I believe it is important to enable a EU neighbour to develop into a stable, prosperous and democratic country. One that offers great opportunities for doing business.

So, as a member of the government of this great trading nation, I will vote yes and I hope many Dutch will do too.

Thank you.