Protests by local farmers against the imports of Ukrainian grain to the EU have been described as “artificially overheated” by the deputy chair of the Ukrainian Agri Council (UAC), Denys Marchuk.
Tension among farmers in countries neighbouring Ukraine is increasing amid high imports from the country which has caused problems for local farmers selling their own produce.
A proposal by the European Commission could see the suspension of import duties, quotas and trade defence measures on Ukrainian exports to the EU extended until June 2024.
To support affected farmers a package worth €56 million is currently being rolled out in the EU, which will allocate €29.5 million to Poland, €16.75 million to Bulgaria and €10.05 million to Romania.
Solidarity Lanes
The Solidarity Lanes, which connect Ukraine to the EU and the rest of the world following Russia’s blockade of the Black Sea, enabled the export of 29 million tonnes of Ukrainian grain since its establishment in May 2022.
Accounting for 57% of grain exports from Ukraine, the Solidarity Lanes will become permanent transport and trade routes. The Black Sea Grain Initiative accounts for 43% of grain exports.
Export volumes, however, exceed the capacity of the logistic chains which leads to bottlenecks and accumulations at the border. Due to additional transport costs, grain does often not reach the export ports.
The UAC claimed that Ukrainian food mostly transits through Europe and Ukrainian grain supplies are thus “not a factor” in reducing the profitability of European agri-business.
Until sea exports are fully restored, Ukraine will use the Solidarity Lanes without exporting directly to Poland and Romania, but using the countries mainly as transit points, Marchuk said.
EU imports from Ukraine
EU imports of wheat from Ukraine increased from 300,000t in 2021 to 3.0 million tonnes last year. Maize imports rose from 7.4 million tonnes before the war to 12.2 million tonnes in 2022.
Exports of sunflower seeds from Ukraine to the EU climbed from 100,000t in 2021 to 1.9 million tonnes last year. Imports to Bulgaria were the highest, having increased from 36,163t to 943,402t in 2022.
Maize exports from Ukraine to Hungary rose from 15,394t to 1.08 million tonnes. Rapeseed, sunflower seed, and maize exports to Romania were up from 60t to 320,835t; from 418t to 359,183t; and from 69t to 739,299t respectively.
Poland’s imports of wheat, maize and rapeseed saw a significant increase from 2,375t to 500,008t; from 5,863t to 1.84 million tonnes; and from 78,077t to 657,585t respectively.
Poland
Poland’s new Minister of Agriculture and Rural Development, Robert Telus said the increased influx of agricultural goods, especially cereals, from Ukraine caused disturbances in the domestic market.
In a meeting with Telus, Ukraine’s Minister of Agriculture, Mykola Solski said the country will refrain from exporting wheat, corn, rapeseed and sunflower seeds to Poland until the new season.
Every transport that passes through Poland, which will take place without restrictions, will be monitored to ensure that goods do not stay in the country, Poland’s Ministry of Agriculture and Rural Development said.
The deputy chair of the UAC claimed that Ukraine sells some grain to Poland, but it is not “massive” and that the decrease in world prices for grains and oilseeds is a “trend”.
“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,” Marchuk said.