Corn production costs in Ukraine are half those in the EU — French association

Corn production costs in Ukraine are around half those in the European Union, according to the French corn growers’ association AGPM. Against this backdrop, European farm groups are urging the European Commission not to expand trade preferences for sensitive agricultural products from Ukraine.

Eight agricultural organisations, including Copa-Cogeca and the European Confederation of Maize Production, have backed the position. They propose limiting the current consultations to implementation of already agreed trade arrangements and returning to a possible review of trade terms in 2028.

AGPM says its position is based on major differences in production costs and regulatory requirements. According to the association, of 114 active substances permitted for use on corn in Ukraine, 47% are not approved in the EU and 62% are not approved in France. The association proposes linking any further trade preferences to Ukraine’s alignment with EU standards and tighter import controls.

Under AGPM’s scenario, Ukraine’s corn production could rise to 39 mln tons by 2030, while planted area could expand by more than 1 mln ha. The association says this could intensify competition in the European market.

French producers estimate that markets for around 2.9 mln tons of French corn could potentially be affected by competition from Ukraine. AGPM estimates possible revenue losses in the market segments covered by the study at €663 mln.

Tags: Ukraine, corn, EU, prices