EU Commissioner for Agriculture Janusz Wojciechowski said on Monday 18 July that the European Commission was finalising a decision to extend derogations from Good Agricultural and Environmental Conditions (GAEC) to 2023 in order to increase grain production in the context of the war in Ukraine.
At Monday’s Council meeting, the Commissioner for Agriculture referred to the demands of a majority of EU Agriculture Ministers to continue the derogations on crop rotation and set-aside land (GAEC 7 and 8) in 2023.
Janusz Wojciechowski said that the Directorate-General for Agriculture (DG AGRI) had submitted to the Commission’s inter-service consultation a draft act to allow temporary derogations from the rules on these GAECs in 2023, as in 2022. “The consultation is underway to assess the scope of the measure”, said the Commissioner, who said he supported the measure to increase EU production at this time of war in Ukraine and thus ensure global food security. In 2023, “we will face uncertainties about wheat availability, even in a scenario where wheat exports from Ukraine could resume via seaports”, he said.
Resumption of grain exports from Ukraine? “The export of grain from Ukraine remains a major challenge”, said Janusz Wojciechowski.
However, the Commissioner noted the continued progress in the operation of the Solidarity Lanes and the positive news about the potential reopening of Black Sea ports to recommence agricultural exports blocked in Ukraine. “This is a crucial issue, as the autumn harvest is fast approaching and farmers are deciding on their plans for the next season”, the Commission explained.
UN efforts to find a diplomatic solution for the reopening of the Black Sea ports seem to be moving in the right direction, the Commission also said. “This agreement still needs to be implemented, but it would be a major step forward in allowing grain exports through this route again”, Mr Wojciechowski said.
Russian and Turkish presidents Vladimir Putin and Recep Tayyip Erdoğan will discuss mechanisms to allow grain exports from Ukraine on Tuesday 19 July in Tehran.
The UN-brokered deal aims to move some 20 million tonnes of grain blocked in Ukrainian silos due to Russia’s offensive in Ukraine out through the Black Sea. It should also facilitate Russian grain and fertiliser exports, which have been affected by Western sanctions.
Agricultural market situation. All eyes are currently on the EU cereal crop, particularly wheat for this year.
EU cereal production contributes to global food security. However, the Commission had to revise downwards the estimates of this summer’s cereal production due to the weather conditions. Grain production for the 2022/2023 marketing year is estimated at 286.4 million tonnes, 7 million tonnes less than last season.
The Commission relayed concerns that maize import volumes from Ukraine to Poland, Romania, Hungary and Slovakia have increased compared to last year. “We have to be careful about the impact of these imports and are therefore monitoring prices in Romania, Poland and Hungary”, the Commission services said. (Original version in French by Lionel Changeur)