Eastern EU Farmers Express Frustration Over Ukrainian Grain Influx Leading to Plummeting Prices

Fri Apr 21 2023
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BRUSSELS: Farmers in eastern EU states are fuming over an influx of Ukrainian grain, which they claim has saturated their market and led to a massive drop in prices.

Due to Russia’s invasion and disruption of Ukraine’s traditional Black Sea shipping lanes, the EU permitted Ukraine to export agricultural products through the bloc.

However, protests have led authorities in Bulgaria, Hungary, Poland, and Slovakia to announce a temporary ban on Ukrainian grains in the past week. Despite this, goods can still transit through these countries as EU discussions are ongoing to resolve the issue.

Bulgarian farmer Angel Vukodinov, who has been a farmer for over 30 years in the central Bulgarian town of Saedinenie, says the compensation offered by the EU for their losses is a joke.

He blames the Ukrainian grain influx for the piles of unsold sunflower seeds in central Bulgaria, a situation shared by other farmers in the eastern EU nations. In response, the European Union has offered financial aid for farmers impacted by the influx.

Ukrainian sunflower seeds import to the EU’s poorest member

Last year, 940,000 tons of Ukrainian sunflower seeds were imported into the EU’s poorest member, Bulgaria, or half of Ukraine’s total exports of sunflower seeds to the bloc. Neighboring Romania came second with nearly 360,000 tons.

The market of sunflower seeds in Bulgaria has become oversaturated, with prices plummeting to around 360 euros per ton, which does not cover production expenses, according to Marin Iliev, management board member of the Plovdiv Union of Grain Producers.

In February, faced with protests and roadblocks by farmers, the European Commission offered a 56-million-euro package for farmers, with an additional 100 million euros of support added this week.

Emergency measures have also been proposed to ensure grain could enter Slovakia, Poland, Hungary, Romania, and Bulgaria only for export. However, farmers are calling for a permanent solution to the market saturation and plummeting prices.

The uncertainty continues as the EU and eastern EU farmers engage in talks to find a solution. While farmers are hopeful for solidarity corridors to remain solidarity corridors in practice, Nikolay Valkanov, director of the Sofia-based think-tank InteliAgro, accused an “aristocracy of major farmers” of holding the country “hostage” by not selling produced grain last year while hoping for prices to go up.

He stated that the average price of Ukrainian sunflower seeds sold in Bulgaria last year was $690 per ton, which was not a dumping price, and questioned why the Bulgarian farmers did not sell their produce back then.

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