Ukraine has imposed restrictions on the export of cereal grains. The ban will remain in effect for the rest of this year. Ukraine is one of the world's largest grain exporters.
According to recent estimates, Ukraine's grain production is only at 40 to 50 percent due to the Russian invasion; the harvest cannot be gathered, and the grain cannot be processed. So far, Ukrainian dairy farmers are especially hard hit as transport and logistics are almost impossible.
Some parts of Ukraine currently under fire by Russian troops play a crucial role in the country's wheat production and export. According to the US Department of Agriculture (USDA), most of Ukraine's wheat harvest is concentrated in the southeast. Blocking access to the Black Sea ports could seriously disrupt exports.
Earlier, Hungary also decided on a partial export stop to combat price increases. From tomorrow, Serbia will also ban exports of wheat, corn, flour, and cooking oil to counter price hikes caused by the Russian invasion of Ukraine, said President Aleksandar Vucic. Previously, Hungary had already decided on a partial export stop to curb price inflation.
Farmers elsewhere in Europe are expected to plow up all their fallow lands and increase grain cultivation as the crisis in Ukraine worsens. Politicians in Brussels are concerned about the growing impact of the conflict between Russia and Ukraine on food supply and prices.
EU Agriculture Commissioner Janusz Wojciechowski has held an initial meeting in Brussels with the new ‘expert group’ convened partly on the advice of the 27 agriculture ministers. Although nothing has been officially announced yet, this group will draft an ‘agricultural action package’ that EU politicians and ministers will discuss later this month.
A Polish agricultural website reports that the EU crisis reserve of 497 million euros will be made available to farmers affected, and that there will be a temporary buy-out scheme in the pig farming industry. These two measures are primarily aimed at pig and poultry farmers who are most affected by rising fertilizer prices and disruptions in animal feed supply.