European Commission sees no negative impact of Ukrainian agricultural exports on EU markets

The European Commission sees no negative impact of Ukrainian agricultural exports on EU markets. This was discussed at a meeting of the European Parliament’s Committee on Agriculture and Development in Brussels.

During the meeting, MEPs exchanged views with members of the European Commission on the risks to EU farmers from the growth in the supply of Ukrainian products.

“We are monitoring the volumes, we are monitoring the price dynamics, the import price at the national level as well as the prices at the EU level, and we publish a monitoring report every two months. So far, we don’t see any very significant negative consequences for the EU agricultural market,” said Pierre Bascu, Director for Sustainable Development and Revenue Support at the European Commission’s Directorate-General for Agriculture.

The Commission is working to develop “solidarity corridors” and reduce transit costs, as it wants “Ukraine to continue to contribute to global food security and to be able to continue to export its products to the EU as well as beyond.”

According to the MEPs, the “solidarity corridors” have been a lifesaver for the Ukrainian economy and have allowed for the export of more than 108 million tons of goods and the import of 38 million tons of other products, totaling 123 billion euros. These volumes have increased significantly since the opening of the Black Sea route.

“In October, out of 4.5 million tons of grain and other related products exported from Ukraine, 3.2 million tons passed through the ‘solidarity corridors’ and about 1.3 million tons – through the humanitarian Black Sea corridor,” the report says.

At the same time, the deputies said that it is necessary to minimize the negative impact on European farmers. In their opinion, the surge in exports to the EU, which is so important for the Ukrainian economy, “has had some unintended consequences in some regional markets in frontline member states, and has also put pressure on certain sectors in the EU.”

Mazalie Aguilar, vice president of the Agrarian Committee, said that Spanish ports are overflowing with grain not only from Ukraine but also from Russia, at incredibly low prices. “With such import pressure, they cannot continue to operate. Obviously, we have to show our solidarity with Ukraine, but not at the expense of our grain producers,” she said, urging the Commission to take measures to prevent European grain producers from going bankrupt.

At the same time, Spain, where grain production has fallen by more than 40% this year due to unfavorable weather conditions, is in dire need of grain.

MEPs believe that the transit of Ukrainian grain through the EU to final markets should be supported. Also, some of them suggest, the World Food Fund could be more active and buy back some of these grains.

Unlike grain, imports of Ukrainian sugar to Europe are not a concern. “Sugar prices exceed 800 euros per ton, which is extremely high in historical terms. So, the EU sugar production this year is estimated to reach about 15.6 million tons, which means that imports will be necessary,” said Norbert Lins, the committee’s chairman.

“We want to see Ukraine as an EU member in the future. It is a major producer,” said committee member Martin Heusling. At the same time, a long-term plan is needed to balance the protection of European producers and assistance to Ukraine: “We cannot expect the war to end in three months, we need to get used to this situation.”

As a reminder, Ukraine has introduced new rules for the export of agricultural products under martial law. The new rules should prevent abuse and violation of the law. In particular, a list of verified agribusiness entities that export goods will be formed.

Tags: Ukraine, export, grain, EU, agricultural products