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Cheap Grain From Ukraine Make Problems for Neighbours

Mintec Global
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According to Bloomberg, some European countries called on the Union to act to help reduce grain stocks as cheap grain imports from Ukraine flood markets in neighbouring countries. Demand for local grains is going down and it leads to protests from farmers.

Six Eastern European countries, led by Poland, called for measures, including compensation for farmers, at a meeting of EU agriculture ministers on January 30. They also demanded to block transit routes so that Ukrainian grain and other products could reach third countries without creating disruptions in Europe.

In 2022, the EU temporarily suspended tariffs and quotas on Ukrainian agricultural products in an attempt to help grain flows blocked by Russia’s invasion and blockade of Ukrainian ports.

“I informed the ministers about the problems faced by farmers of neighbouring countries regarding the import of Ukrainian grain, which was planned to be sent to Western Europe and Africa,” Polish Minister of Agriculture Henryk Kowalczyk told reporters in Brussels. “Some part remains in neighbouring countries, so there are problems for local farmers who cannot sell their own grain.”

Huge imports from Ukraine to Poland

According to a document shared by the countries at a ministerial meeting in Brussels, corn imports from Ukraine to Poland increased to 1.6 million tons from January to November 2022, which is over 25,000% more than in the corresponding period of 2021.

Imports to Hungary jumped to more than 900,000 tons from 5,000 tons, while imports to Bulgaria reached 16,742 tons from 361 tons.

“We want to involve the whole EU”

“Large imports of products from a single source during the national harvest caused market disruption in all Member States involved,” the countries’ document said. “Part of imported grain goes to domestic feed processors, which leads to a decrease in demand for domestic grain.”

“We are ready to continue helping Ukraine, there is no way back,” Kovalchyk said. “But we want to involve the whole EU in solving this issue”.

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