Protests by local farmers against Ukrainian grain supplies are increasing in the EU. However, Ukrainian food mostly transits through Europe, so Ukrainian grain supplies are not a factor in reducing the profitability of European agribusiness.

The Deputy Chairman of the UAC, Denys Marchuk, explains: "Until full-fledged export by sea is restored, Ukraine uses the "Paths of Solidarity" and supplies products without exporting directly to Poland and Romania, using these countries mainly as transit points. The political nature of the strikes by European farmers is obvious. Ukraine sells some grain to Poland, but it is not massive. The decrease in world prices for grains and oilseeds is a trend. However, certain forces need to demonstrate that this happened because of the surplus of Ukrainian grain. In Poland, farmers were "warmed up", but let's not forget that elections are coming up there in the fall."

Against the background of protests against Ukrainian grain in Poland, the head of the relevant ministry was changed.

"So far, agreements have been made on the free movement of transit products from Ukraine. Direct export to Poland is stopped. Previously, farmers of Ternopil, Khmelnytskyi, Lviv, Volyn and Rivne regions had counterparts in Poland to sell their grain. So, there will be a big problem for our western regions now, because farms have 30-40% of last year's harvest left, which was planned to be sold and used for sowing. During the war, Ukrainian farmers sold grain at prices 40-50% lower than market prices and also helped the army - all this without receiving subsidies, unlike European farmers. And when world prices fell, and Polish farmers did not receive the planned profitability, they blamed Ukrainian grain," added Denys Marchuk.

Unlike Poland, there is no such acute situation in Romania, since the territory of the country is used to a greater extent as a transit through the Danube to large ports and Ukrainian food moves to the world from there.  

Currently, it is advisable to build "dry ports" on the territory of Western Ukraine to ensure more grain supplies through the EU

Wednesday, 12 April 2023

 

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