The European Commission has banned the import of Wheat, Corn, Rapeseeds and Sunflower seeds from Ukraine to Bulgaria, Hungary, Poland, Romania and Slovakia until September 15 to protect local farmers and eliminate logistical problems caused by shipments of cheap Ukrainian grain.
While Ukraine has increased exports of wheat, sunflower and maize to the EU, this has provided European processors with cheap raw materials and boosted meat production, which has helped lower EU food inflation.
"The countries that have now banned the import of Ukrainian agricultural products, thanks to these products have strengthened their export potential over the past year, boosted their own processing and increased the competitiveness of animal husbandry," said Ukrainian Minister of Agricultural Policy M. Solsky at a session of the EU -Council for Agriculture and Fisheries in Brussels on May 29th and 30th.
Thanks to Ukrainian grain, Poland increased its exports by more than 25 percent to a record €47,5 billion, while poultry production increased by 7,5 percent.
“Poland and other countries that have now joined the restrictions bought €7 billion worth of agricultural products from Ukraine, including €3,5 billion worth of grains and oilseeds, which were then re-exported to other countries. 80% of exports of grain and oilseeds from these countries went through Ukrainian transit and increased by 2022 billion euros in 18. This year, however, Ukraine will reduce grain and oilseed exports by 40 percent to 46 million tons compared to last year,” Solskyy added.
Quotations on the Euronext exchange in Paris rose sharply on the back of the European Commission's decision to maintain the import ban on Ukraine:
- Wheat futures for September rose 2,9% to €230,5/tonne (€340/tonne last year and €194,5/tonne two years ago),
- November Corn Futures – up 2,4% to €221,75/tonne (€282,75/tonne and €195/tonne two years ago)
- September Rapeseed Futures – up 4,2% to €423,5/tonne (€675/tonne and €436,5/tonne).
European farmers should be reminded that it was Russia's military aggression against Ukraine that caused world grain prices to soar in 2022, and that high prices are now ensuring profitable production.
Source: Ukragroconsult (Ukraine)