European processors and politicians propose to lift the ban on grain imports from Ukraine

In the EU, 22 countries do not support the proposal of Poland, Hungary, Romania, Slovakia and Bulgaria to extend the ban on grain imports from Ukraine after September 15, Politico reports, citing anonymous sources in diplomatic circles.

One of the EU diplomats said that at a meeting with the European Commission, EU ambassadors from 22 countries opposed the extension of the restrictions or were skeptical, although they recognized the difficulties faced by Ukraine’s five neighboring countries. France and Germany were the most critical of the ban extension. Therefore, some countries may lift the ban on certain goods from Ukraine.

The ban on imports of Ukrainian sunseed may be lifted on September 15, as some processors, especially in Bulgaria, may stop working due to the shortage of supplies caused by poor prospects for the EU sunseed crop in 2023/24 MY.

The Bulgarian Association of Vegetable Oil and Oil Products Producers condemned the call of the country’s Minister of Agriculture to the European Commission to extend the ban on sunseed imports from Ukraine until the end of the year. Representatives of the Association defend the interests of the processors and accuse the authorities of suppressing their industry in favor of another, which distorts the market.

The relations between Bulgarian processors and farmers are deteriorating amid lower harvest forecasts for 2023/24 MY and increased stocks that could not compensate for the shortage of Ukrainian sunseed.

Now, the sunseed crop forecasts are lowered by 17% to 1.7-1.8 mln tonnes for Bulgaria and by 11.5% to 2.3 mln tonnes for Romania compared to August. As of the beginning of September, the sunseed stocks in these countries were 30% higher than last year, but this does not compensate for the deficit. Experts estimate the sunseed stocks in Bulgaria at 200-300 thousand tons with the official estimate of 600 thousand tons, and in Romania – 300 thousand tons.

Farmers are not in a hurry to sell, as they consider prices to be below cost. However, prices continued to fall even after the ban on imports of Ukrainian sunseed, processors report.

Market participants hope that the import ban will be lifted, given the reduction of sunseed harvest in Romania and Bulgaria due to drought.

Tags: Ukraine, EU, restrictions