The overabundance of cereals on the world market weighs on the goodwill that Ukraine needs and on neighboring markets
Poland and other states neighboring Ukraine have agreed to help the country sell its grain stocks on world markets after the Russian invasion blocked its exports. Some of this supply is now accumulating in Eastern Europe and threatening local livelihoods.
Many growers held onto their harvest in expectation of higher prices. Instead, a broader global slowdown has sent grain values plummeting, leaving farmers in Poland, Romania, Slovakia, Hungary and Bulgaria facing lower incomes.
Five Central European countries thus called on the European Commission a few days ago to set up additional aid for farmers in these countries affected by large imports, in particular cereals from Ukraine, which destabilize local markets.
“We call for the establishment of additional sources of financing, in addition to the planned emergency measures, in order to support agricultural producers who have suffered losses and are at risk of losing financial liquidity”wrote the heads of the Polish, Slovak, Hungarian, Romanian governments and the Bulgarian president.
Protest actions by farmers have been organized for some time in Poland, while wheat arriving from Ukraine to be transferred to other countries in the world often remains behind, causing the saturation of silos and a significant drop in its price. In addition, the five countries asked the Commission to“explore the possibility of buying grain surpluses from neighboring Member States for humanitarian purposes”.