The Lithuanian government may help Ukraine export up to 1 million tons of grain by rail after Poland temporarily banned grain imports from Ukraine, said Lithuanian Economy and Innovation Minister Ausrini Armonaitė.
“The port of Klaipeda and Lithuanian Railways can play an important role in creating momentum to help Poland resolve the situation and guarantee grain exports outside the EU. Lithuania could help safely transport up to 1 million tons of grain from Ukraine by rail. This would be a real solution for Ukraine and a benefit for Poland,” Verslo zinios quoted the minister as saying.
In turn, the president of the Association of Lithuanian Sea Cargo Companies Vaidotas Shileyko noted that the port of Klaipeda is able to process more than 1 million tons of grain a year, but because of the difficult logistics, it is impossible to import more.
“Lithuanian railroads started transporting small volumes of Ukrainian grain through Poland to the port of Klaipeda last May. The main problem here is different railway gauges: Ukraine and Lithuania still use Russian gauges, while Poland uses European ones, which means that rolling stock has to be changed at the border,” he explained.
Farmers in Romania and Bulgaria staged protests on Friday against the European Union’s decision to exempt agricultural products from Ukraine, which has oversupplied local markets and contributed to lower prices, the Associated Press (AP) reported on Friday.
“Farmers in Romania and Bulgaria organized protests on Friday over the European Union’s stance on excessive supplies of Ukrainian agricultural products that have flooded local markets and weakened prices,” AP reports.
Protests were held in Bucharest and other cities in Romania. In Bulgaria, farmers blocked several border crossings.
“There are less than three months left before the new harvest and there is a danger that the products will not be able to be sold above the production price,” AP quoted Liliana Peron, executive director of the Romanian Farmers Association, as saying.
In recent weeks, Polish farmers have also been protesting against the EU’s duty-free supplies of Ukrainian grain to European markets, forcing the country’s Agriculture Minister Henryk Kowalczyk to resign.
Last year, the EU abolished customs tariffs for Ukraine to allow for freer grain supplies.
On Monday, the European Commission announced its desire to help the population of Ukraine by organizing the export of Ukrainian grain, but it is making sure that the EU market does not suffer too much from Kyiv’s support measures.
The USAID Agro program will allocate UAH 367 million to co-finance projects to support processing of grains, oilseeds and pulses in Ukraine, the press service of the Ministry of Agrarian Policy reported.
“This will create the potential for the production of products with added value and ensure the expansion of channels and markets. Consequently, qualitatively and quantitatively improve the food security of Ukraine and the world,” the report stresses.
According to USAID, the goal of the project is to improve small agricultural producers’ access to capacities for processing and refining grains, oilseeds and pulses into food, feed, industrial products and biofuel.
As it is specified, it is planned to allocate up to 367 million hryvnia within 20 projects with the term of realization up to two years. It is assumed that the amount of each sub-grant will be from 10 to 36 million UAH and will be discussed individually.
“It is expected that under the projects executors – Ukrainian entities – will provide MSME with expert, technical and financial support to expand the processing of grain, oilseeds and pulses. Activities will be aimed primarily at expanding existing processing facilities, which will lead to increased production of higher value-added cereal products for domestic consumption and export,” the report summarizes.
Romanian farmers are threatening to launch a large-scale nationwide nationwide protest on June 7 if authorities do not ban the transit and import of grain from Ukraine from June 15, 2023, to March 15, 2024, the Alliance for Agriculture and Cooperation (AAC) reported.
“As a measure to protect the activities of farmers and the agri-food sector, we ask President Klaus Johannis, the prime minister, the heads (of the local parties PNL and PSD – IF) Nicolae Ciucă and Marcel Ciolacu, (Minister of Agriculture) Petra Daea to represent Romanian interests more firmly and to take all legal steps and diplomatic measures that are imposed to prohibit the transit and import of agricultural products from Ukraine in the period from June 15, 2023 to March 15, 2024,” AAS adevarul. ro.
The Alliance notes that the agricultural market is “severely distorted to the detriment of Romanian farmers.” It argues that in 2023, most farmers will be forced to close their farms because of the high costs of growing crops, and the prospect of selling products at prices below cost “even under good production conditions will not save them.
The ACC appeal stresses that the EUR10 million allocated by the European Commission to Romania to mitigate losses is insignificant. “These funds can at most be redirected to restore, at least partially, the road infrastructure damaged by the intensive transit of Ukrainian goods,” the ACC believes.
The member organizations of the Alliance for Agriculture and Cooperation – AAC, National Federation PROAGRO, League of Agricultural Producers’ Associations from Romania – LAPAR, Union of the National Chapter of Vegetable Sector Cooperatives – UNCSV and Forum of Professional Farmers and Processors from Romania – FAPPR, together grow crops and raise livestock on more than 4.7 million ha. In its ranks are more than 56.5% of those employed in the agricultural sector and 20% of the food industry in Romania.
In Poland, as well as in Slovakia, the Czech Republic, Hungary, Romania and Bulgaria, last week there were protests by agricultural producers against increased grain shipments from Ukraine, for which Brussels temporarily lifted duties.
Ukraine since the beginning of 2022/2023 marketing year (MY, July-June) and till April 10 has exported 38.82 million tons of grain crops, including 22.86 million tons of corn (58.9% of total supplies), 13.34 million tons of wheat (34.4%) and 2.3 million tons of barley (5.9%).
As reported on the website of the Ministry of Agrarian Policy and Food on Monday, the rate of grain exports since the beginning of this MY is 14.3% lower than the same period of the previous MY, when 45.26 million tons were delivered abroad on that date.
According to the Ministry, Ukraine exported 22.86 million tons of corn (+9.5% compared to the same period last year), 13.33 million tons of wheat (-23%), 2.3 million tons of barley (2.4 times less), 17.7 thousand tons of rye (9.1 times less) and 120.1 thousand tons of flour (+56.9%) from the beginning of 2022/2023 MY to April 10 this year.
It is specified that Ukraine exported 848 thousand tons of cereals, including 476 tons of corn, 337 tons of wheat, 33 thousand tons of barley and 4.2 tons of flour in March.
As reported, Ukraine exported 48.51 million tons of cereals and leguminous crops in 2021/2022 MY, which is 8.4% higher than in the previous MY, despite the full-scale invasion of Russia and the difficulties with the export of agricultural products due to the blockade of Ukrainian seaports. 18.74 million tons of wheat (12.6% more than in 2020/2021MY), 23.54 million tons of corn (+1.9%), 5.75 million tons of barley (+35.9%), 70.9 thousand tons of flour (-44.1%) were supplied to foreign markets.
Ukraine in 2020/2021 MY exported 44.72 million tons of grain and leguminous crops: 16.64 million tons of wheat, 23.08 million tons of corn, 4.23 million tons of barley, 126.9 thousand tons of flour and 18.4 thousand tons of rye.
In 2019/2020 MY, Ukraine exported 56.72 million tons of grain and leguminous crops.
The total export of Ukrainian flour as of April 10 is estimated at 120.1 thousand tons (in April – 4.3 thousand tons), including wheat – 115.5 thousand tons (4.2 thousand tons).
Farmers in Romania and Bulgaria staged protests Friday against the European Union’s decision to exempt agricultural products from Ukraine from duties, which ended up oversaturating local markets and contributing to lower prices, the Associated Press (AP) reported Friday.
“Farmers in Romania and Bulgaria staged protests Friday over the European Union’s stance on excessive supplies of Ukrainian agricultural products that have flooded local markets and weakened prices,” AP reported.
Protests took place in Bucharest and other Romanian cities. In Bulgaria, farmers blocked several border points.
“The new harvest is less than three months away and there is a danger that produce cannot be sold above the production price,” AP quoted Liliana Peron, executive director of the Romanian Farmers’ Association, as saying.
Polish farmers have also protested in recent weeks over duty-free supplies of Ukrainian grain to European markets adopted by the EU, forcing the country’s Agriculture Minister Henrik Kowalczyk to resign.
Last year, the EU abolished customs tariffs for Ukraine for freer grain shipments.
On Monday, the European Commission said it wanted to help the Ukrainian population by organizing the export of Ukrainian grain, but it is making sure that the EU market is not hit too hard by Kiev’s support measures.
