The increased Ukrainian grain export is causing problems for Hungary

The increased Ukrainian grain exports have badly affected the EU agricultural market. Therefore, member countries, including Hungary, are turning to the European Commission for a solution. 

Last year, the world market price of wheat rose by 60 percent

Last year, the world market price of wheat rose by 60 percent in three months due to the Russian sea blockade of Ukrainian grain shipments, writes mandiner.hu. The food crisis mainly caused concern for the poorer African and Asian countries, so the Western states seized all possible means to get the shipments out of Ukraine. However, with the stabilisation of the situation and the partial reopening of Ukrainian ports, the issue of Ukrainian grain exports became even more complicated.

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Ukraine’s export of grain and oilseeds to Hungary increased significantly

The Hungarian minister held discussions with several EU agriculture ministers about the agricultural market situation in the European Union as part of the International Green Week in Berlin. The main reason for the consultation is that despite the partial reopening of Ukrainian ports in recent months, Ukraine’s grain and oilseed exports to Hungary and other EU member states neighbouring Ukraine have increased significantly, causing serious supply chain issues in these countries, repotrs portfolio.hu.

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International grain traders now supply Ukrainian grain

The fundamental problem is that international grain traders are now supplying Ukrainian grain instead of grain produced in EU countries. “The significant amount of imports coming from Ukraine to the EU by sea and land depresses producer prices despite the high input costs, and its long-term presence would cause serious problems in the grain and oilseed producing countries of Europe. In order to prevent these negative processes, it is necessary to review the developed market conditions and take appropriate EU measures,” said the Minister of Agriculture.

The head of the ministry emphasised that they respected the EU measures helping Ukrainian grain to reach the world market, but they had a duty to protect the interests of domestic and European farmers and maintain the EU’s internal market balance. That is why the agriculture ministers agreed to call on the European Commission to take measures aimed at stabilising the internal market at the agricultural council in Brussels in January.

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Source: Portfolio, Mandiner