The Food&Agriculture Sector Head of the Better Regulation Delivery Office (BRDO) Andriy Zablotskyi believes that local agri-food markets are an important step towards reducing the shadow food trade. According to him, the time has come to create a system of local agri-food markets in Ukraine. This practice will allow us to introduce a common European practice and fill legal gaps to ensure more civilized and responsible relations between sellers and buyers. In addition, this is a step towards creating an incentive system to reduce the shadow sector of the domestic food trade.
There are currently three main levels of selling foodstuffs:
- for own consumption – produced and consumed without state control or requirements;
- for local consumption – a manufacturer has the right to sell own agri-food products only within a specified locus (locality, district, region). However, he doesn’t need to receive operating permits, as the place of his manufacture is subject to state control and the place of sale of his products just falls within the scope of supervision;
- for free sale in the country and for export – a manufacturer either is fully controlled by the state or has introduced the HACCP system or its analogue.
In such a way, the current concept of local agricultural markets is actually a transitional link for manufacturers, who are ready to produce for not only themselves, but are not yet ready to enter the national level.
Considering this fact, the BRDO is actively involved in developing this direction. We support the concept of creating a system of local markets not just as places of sales, but as a system of trade relations development at the local level. This system should be a set of tools to promote a seller’s responsible attitude to his product, its quality and safety and, of course, ensure other basic civilized requirements. In particular, traceability assurance, non-discrimination and protection of legal interests of all market players.
BRDO experts were closely involved in developing the draft law “On local agri-food markets” initiated by the Ministry of Agrarian Policy, the adoption of which will allow to solve the above problems and have a positive impact on the business environment development in Ukraine. It is hoped that the draft law will be included in the agenda of legislators in the near future and become a progressive innovation of reforms implemented in Ukraine.