The EU needs Ukrainian grain, corn, meal and other products – Mykola Solsky

UkrAgroConsult

The reason for the rise in European grain prices is not the cost of Ukrainian grain. Ukraine has always traded with Europe, and it has always been in substantial amounts. The main reason is the war waged by Russia against Ukraine and many other factors. This was emphasized by the Minister of Agrarian Policy and Food of Ukraine Mykola Solskyi during an online speech at the EU Council on Agriculture and Fisheries.

Mykola Solskyi emphasized that Ukrainian farmers are working in extremely difficult conditions of war, but understand the problems of their colleagues abroad.

“The problems of farmers in European countries are not the fault of Ukrainian farmers. And the root cause of this situation on the European market is not the price of Ukrainian grain, but the war that Russia has waged against Ukraine. This war, let me remind you, has been going on for nine years. We are now in the second year of the terrible and cynical terror, the destruction of everything Ukrainian by the Russian aggressor,” emphasized Mykola Solsky.

He emphasized that Europe needs Ukrainian grain, corn, meal and other products, and that Ukrainian goods are useful for the European market. In particular, Ukrainian imports to Poland have brought many benefits not only to Ukraine but also to Poland itself. Exports of meat and dairy products grew by 37% last year. “These are industries that require feed, and grain from Ukraine has strengthened the competitiveness of Polish producers. Exports of grain and processed products from Poland also increased by 40%,” the Minister said.

“Grain from Ukraine has strengthened the competitiveness of Polish producers. Therefore, the business of the neighboring country has been growing, using Ukrainian raw materials as well. In particular, in 2022, chicken production in Poland increased by 8.2% compared to 2021. Poland has become one of the leaders among EU countries in exporting chicken to third countries. In the 1st quarter of 2023, Poland sold 10.5 thousand tons of chicken to Ukraine, and Ukraine sold 4 thousand tons to Poland, which is 2.5 times less,” Mykola Solskyi emphasized.

In addition, according to him, traders, carriers, and ports have made money on Ukrainian grain.

Mr. Solsky also emphasized that Ukrainian grain was not the key reason for the market price increase. “Over the past 2 months, prices have been falling down, contrary to the expectations of farmers in all countries. And it is not because of Ukrainian grain, but because of the forecasts of a very large harvest from Brazil. This factor puts pressure on the markets perhaps more than exports from Ukraine.

“We see a rapid growth in Brazilian production and exports, which, with slowly growing demand, puts significant pressure on prices. We are sincerely happy for our colleagues from South America, but based on the recent experience, do we really need to close export opportunities for Brazil to make world prices turn up again?” Mykola Solsky addressed his European colleagues.

He emphasized that agrarian trade between Ukraine and the EU means food security for EU member states that suffered from last year’s drought. It is the efficiency of livestock production in Germany, the Netherlands and other livestock leaders, the Minister of Agrarian Policy emphasized. He also noted that it is now necessary to reach a mutually beneficial solution through discussions and negotiations.

“We emphasize once again that the opinion and position of our neighbors is extremely important to us. And the enormous support we have received and continue to receive. We are having a discussion, because true friends always have a discussion and at the same time they always find a solution,” emphasized Mykola Solsky.

He also expressed hope for a balanced decision by the European Commission.

Further development of the Black Sea and global grain and oilseeds markets will be discussed by UkrAgroConsult analysts and leading agribusiness operators at the EURO GRAIN HUB Exchange & Forum on April 26-28 in Bucharest, Romania.  Join the key stakeholders from the Black Sea region, Central & Eastern Europe and Balkans, contributing to the global commodity supply chain.

Tags: Poland, wheat, Germany, meal, food security, restrictions, Ukraine, corn, grain, EU, prices