Romanian farmers are going bankrupt because they cannot compete with cheap Ukrainian grain on the domestic market, according to the report of Euractiv.
As you know, at the beginning of the full-scale invasion, grain supplies from Ukraine, a global grain producer, became impossible. In order to avoid a global famine, in May the EU introduced a set of measures for the export of Ukrainian food called the Solidarity Package. European countries suspended customs duties and abolished the requirements for sanitary and veterinary certificates. These decisions made it easier for Ukrainian agricultural products to enter the markets of neighboring countries.
Romania imported $1.24 billion worth of Ukrainian grain, far outstripping any other country in the world. In total, 13.9% of Ukraine’s agricultural exports went to Romania last year. As a result, local grain could not compete with Ukrainian products and is mostly idle in warehouses.
The situation on the market is just the first sign of global changes after the reorientation of Ukrainian grain exports. Not only European countries, but the whole world is experiencing significant supply chain disruptions. It affects not only the agricultural sector but also other industries. For example, due to its high quality and low prices, Ukrainian grain quickly captured the European market, displacing local producers. Domestic farmers and logisticians say that even after the war, Ukraine will not abandon new ways to sell its grain. So the “butterfly effect” will only continue to spread.
As a reminder, Bulgarian grain producers have announced an indefinite protest against duty-free grain imports from Ukraine to the European Union. Currently, the grain market in Bulgaria has collapsed, and producers’ warehouses are full of unsold grain.