“The crisis is now” • Agricultural Policy News
Reuters writer Pavel Polityuk reported yesterday that “The Ukrainian Ministry of Agriculture on Saturday revised upwards its forecast for the area to be sown for the 2022 spring cropsgiving no reason for the new outlook.
About 13.4 million hectares of miscellaneous commodities, such as corn, cereals, sugar beets and sunflowers, could be sown this year, 3.5 million hectares less than in 2021 , the ministry said in a report.
“The forecast is significantly higher than an estimate in March by Roman Leshchenko, then agriculture minister, who said the area for sowing the 2022 spring crop could be more than halved from last year. to some. 7 million hectares.”
The Reuters article added that “the ministry said farmers have already started planting spring wheat, barley, peas, sunflower, rapeseed, sugar beet and soybeans.”
In one separate Reuters article from yesterdayPavel Polityuk reported that “Ukrainian railways are struggling with a backlog of grain wagons on the country’s western border as traders seek alternative export routes after the Russian invasion blocked key Black Sea ports, analyst APK-Inform said on Saturday.
Yesterday’s article stated that “but with war raging along much of the coast, traders scramble to transport more grain by rail.
“APK-Inform said that Ukrainian Railways opened 12 terminals for traders, but the wagons were backing up and the railways would need two or three weeks to process them and send them to consumers.
“Traders continue to seek the possibility of redirecting exports to the EU by rail or via Romanian ports, but the main barriers remain limited bandwidth logistics capacity and high cost,” APK-Inform said.
Polityuk added that “analysts said that Ukraine, which had exported 43 million tons of grain to start up of the season in July until the invasion in end of Februarycould only export about 1 million tons in the the next three monthsdue to logistical difficulties.
Meanwhile, Jude Webber, Daniel Dombey, Andy Bounds and Emiko Terazono reported yesterday to the Financial Times Online that “Europe is one of the world’s leading agricultural producers and a net food exporter. The EU gets half of its maize from Ukraine and a third of its fertilizer from Russia, and rising energy prices caused by the war added to the tension. Farmers said they could not immediately pass on these rapid cost increases to customers, causing cash flow problems.
“’These are the four Fs – feed, fertilizer, fuel and finance. The war in Ukraine has had a huge ripple effect on farmers,” said Swithun Still, grain trader and adviser to DCX, an online agricultural trading platform.
The FT editors explained that “Brussels put in place a package of measures last month to support EU farmers, including temporarily relaxing state aid rules to allow governments to provide them with financial support.
“The EU will also moving forward annual agricultural subsidy payments from December to October to cash flow assistance and go help pork producers with the cost of storing carcasses for up to five months, in anticipation of marketing the meat when prices improve.
“But a €500 million crisis fund, which also allows member states to match their share of the funds up to 200%, must be approved by national governments and the European Parliament, a process likely to take several weeks.”
The Financial Times article noted that “the headwinds facing farmers have left many wondering if they can weather the storm. “Farmers have to make decisions today, but they can’t because they don’t know where they stand,” said Eddie Punch, general secretary of the Irish Cattle and Sheep Farmers’ Association. ‘The crisis is now.’”
In other developments, Bloomberg writer Jasmine Ng reported late last week that “concerns are growing over the ability of South East Asia retain his title big rice supplier in the world like countries like Indonesia and the Philippines struggle to produce enough for their own needs.
“Current yield trends will not allow the two countries to be self-sufficient in rice, according to a study published in natural food reviewed in March. This means they will have to rely on imports to meet domestic demand for a staple food. crucial for food security, political stability and export potential.
“It is particularly crucial for regions like sub-Saharan Africa and the Middle East that Southeast Asia continues to produce a large surplus of ricethe researchers added, as it may help reduce world price volatility and to bring stable and affordable rice supplies,” the Bloomberg article said.