On Monday 28 February, the European Commission acknowledged the enormous impact that the war in Ukraine will have on the European agricultural sector, particularly on wheat, barley, maize and sunflower.
The French Minister of Agriculture, Julien Denormandie, has convened an informal meeting (by video conference) of EU Agriculture Ministers for Wednesday 2 March to discuss the effects of the conflict on EU agricultural markets.
During a debate on Monday in the European Parliament’s Committee on Agriculture, MEPs called for greater food security in the EU and for reducing the dependence of European operators on imports. They were also keen to put the economic problems into perspective in view of the loss of life in Ukraine.
The Deputy Director General of DG Agriculture, Michael Scannell, said he was “very concerned” about the effects of the Russian invasion, given that Ukraine and Russia account for more than 30% of world trade in wheat, 32% in barley, 17% in maize and more than 50% in sunflower oil and seeds.
“The price of wheat rose sharply and trade came to a halt. Operators are trying to find alternative markets for their supplies, but it is not easy”, the Commission representative said. Trade via Black Sea ports has virtually ground to a halt, Mr Scannell also noted.
Logistics in Ukraine are disrupted as well, especially with regard to seed certification. The sowing season will also be disrupted. This crisis could be prolonged in the medium term, the Commission said.
“We are closely following the situation in Russia as well. The imposition of sanctions by Russia would be a major disincentive to any trade”, Mr Scannell admitted. Russia had imposed an embargo on EU agricultural products in 2014.
Exports are also affected. For Ukraine, the EU has significant exports of poultry and pork. “We also import a lot of poultry meat”, the Commission said.
Russia remains the 6th largest trading partner of the EU, with trade in processed products with high added value (confectionery, wine, alcohol, cookies, flour ...). “This trade could be strongly impacted” because of sanctions, said Michael Scannell.
Contacts are continuing with the various stakeholders (fertilisers, cereals, animal feed), the Commission assured.
Dependency, emergency plan, soya... Norbert Lins (EPP, Germany), the Chair of this committee, spoke of the rise in wheat prices, but also in fertiliser and energy.
Herbert Dorfmann (EPP, Italy) mentioned in particular the problem of the supply of non-GM soya. “It will be difficult to get it in Latin America”, he said.
Clara Aguilera (S&D, Spain) spoke of the repercussions (cereals, oilseeds) and called for an “emergency plan for the agricultural sector” in the “near future”.
Ulrike Müller (Renew Europe, Germany) spoke about rising grain, oil and gas prices. The EU’s autonomy regarding food security must be strengthened, she also said.
Martin Häusling (Greens/EFA, Germany) called for more soya cultivation in Europe and for the EU to become more self-sufficient in producing animal feed. Bert-Jan Ruissen (ECR, Netherlands) asked the Commission to review the ‘Farm to Fork’ strategy in the light of the new international situation.
The Commission is already working on some of the weaknesses identified by MEPs (food safety, fertilisers, dependence on animal feed from third countries), in particular through the action plan presented at the end of 2021 to strengthen food safety in Europe. The first meeting of the expert group on the subject is to be held very soon.
Michael Scannell also recalled the creation of a focus group to assess the long-term future of the pigmeat sector, whose first meeting will take place before Easter, the Commission assured.
The EU’s agricultural organisations and cooperatives (Copa-Cogeca) said, on Monday, that Ukraine is the EU’s fourth biggest external food supplier and provides the EU with a quarter of its cereal and vegetable oil imports, including nearly half of its maize.
For the EU farming community, this crisis comes on top of the Covid-19 one and the sharp price increases of all major agricultural inputs (energy, feed, fertiliser).
“To keep a strong and peaceful Europe, safeguarding food security and supply chains is fundamental”, says Copa-Cogeca. “European agriculture is a central pillar of our strategic autonomy. EU decision-makers must act decisively and swiftly to preserve it”, concludes Copa-Cogeca. (Original version in French by Lionel Changeur)