• At the meeting of the European Ministers of Agriculture that took place on Monday, 30.01.2023, in Brussels, six member states from Eastern Europe raised the issue of the oversupply of grain on the market, created by cheap imports from Ukraine.
Before Russia invaded Ukraine in February 2022, the two countries together supplied up to 34% of the world's wheat.
In 2022, in an attempt to facilitate deliveries of Ukrainian cereals, blocked as a result of the Russian invasion and the blockade imposed on Ukrainian ports, the European Commission decided to temporarily suspend taxes for agricultural products from Ukraine.
At the same time, "solidarity corridors" were created to facilitate the transport by rail, road and river of large quantities of grain from Ukraine, intended to reach world markets.
Unfortunately, much of Ukrainian grain does not reach the world market, but rather replaces domestic products on domestic markets, such as cheap cattle feed. Thus, Ukraine's corn exports to its EU neighbors rose from several thousand tons to several million tons by November last year, affecting their own agriculture.
Competition with cheaper grains
Competition this with cheaper grain from Ukraine has become a growing concern for Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia, countries that raised the issue in a joint letter addressed to the ministerial meeting in Brussels. Cheap imports from Ukraine have reduced demand for local products and fueled discontent among farmers.
In this context, the six Eastern European states asked the European Commission to adopt measures, including reparation for farmers, as well as securing transit routes so that grain and other products from Ukraine reach third countries without causing disruptions in Europe.
Polish Minister of Agriculture Henryk Kowalczyk states: "I informed the Ministers of Agriculture about the problems faced by farmers in neighboring countries due to grain imports from Ukraine, which were to be sent to Western Europe and Africa. Part of these products remain in neighboring countries and this situation creates problems for local farmers who can no longer sell their own grain".
Henryk Kowalczyk presented data at the Brussels meeting which showed that Poland's corn imports from Ukraine rose to 1,6 million tonnes in January-November 2022, an increase of more than 25.000% compared to the same period of of 2021.
Support for farmers
Also, Ukrainian corn imports to Hungary increased to over 900.000 tons, from 5.000 tons, while in the case of Bulgaria they reached 16.742 tons, from 361 tons.
"Large imports of products from a single source during national harvest campaigns have caused disruptions to markets in all Member States involved", the six member states from Eastern Europe emphasize in the document presented at the meeting in Brussels. The same document also adds: "Some of the imported grain goes to domestic feed processors, which causes a decrease in demand for domestic grain."
The Polish Minister of Agriculture mentions that this taking a position in the face of the created situation does not mean that the six states will not continue to support Ukraine. "We are ready to continue helping Ukraine, this is not a reversal. But we want the entire European Union to be involved in this process", emphasized Minister Henryk Kowalczyk.
Article written by Gabriela Dan, Editor of Arta Albă
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