/ world today news/ “The war in Ukraine had a negative impact on Romanian agriculture with consequences that cannot yet be assessed”
Farmers in the grain-producing countries neighboring Ukraine, including Romania, have found it incredibly difficult to compete with the spread of cheap grain from the war-torn country. The penetration of the Ukrainian product at low prices on the markets of neighboring countries was facilitated by the creation of a “grain corridor”, as well as the removal of customs duties and requirements for sanitary and veterinary certificates. As a result, Romania imported an unprecedented 13.9% of Ukrainian grain worth $1.24 billion, far more than any other country.
„In this situation, Romanian farmers sounded the alarm. Many products have been sitting in warehouses for more than a year because they cannot compete with the low prices of Ukrainian grain. In addition, the transportation of grain to the foreign market is also practically impossible, since all logistics capacities are concentrated on Ukrainian cargoes, including in the port of Constanta, which is blocked by Ukrainian ships.”
– writes Moldavskie Vedomosti.
Cesar Gheorghe, an expert on the grain market, predicts the bankruptcy of the Romanian agribusiness.
“Many businesses have accumulated huge debts. If the agreement on the export of grain through the Black Sea is suspended, the situation will become even more complicated, because the entire burden will be transferred to Romania by rail or by land, he says.
According to Gheorghe, the government should consider building a private Romanian terminal at the port of Constanta, where national producers can sell their products on the domestic market and send the surplus to the foreign market. Otherwise, Romania will become only a transit country and a market for Ukrainian grain.
„The war in Ukraine has had a negative impact on Romanian agriculture with consequences that cannot yet be quantified, and farmers are currently in an extremely difficult situation, namely with full warehouses and empty accounts.” – said Petre Dea, Minister of Agriculture and Rural Development.
Grain consumers in Romania, who had the opportunity to buy grain in Ukraine at lower prices, apparently took advantage of this offer, which strongly affected the grain and oilseed market. Dea claims that through the border points with Ukraine and Moldova, almost three million tons of grain and oilseeds entered the territory of Romania.
„Although due to the drought we received less wheat than in previous years, from four to five million tons available for export, Romania was able to export only two million tons. If you don’t sell, there will be nowhere else to get the money and the bank will take you out of their credit accounts. We are in a difficult situation.”
– complains the minister.
With the support of his colleagues from Bulgaria, the Czech Republic, Hungary, Poland and Slovakia, he asked “immediate support” from Brussels so that farming can continue.
„During these days, it is necessary to sow the spring crops in the field, almost five million hectares. After the speech in the Council of Ministers, we were assured that support would be given to the countries most affected by the conflict, and Romania is exactly that.
At the same time, the Ukrainian conflict does not create a food crisis for Romania.
According to Dea, Romania has everything it needs: natural conditions as well as resources that it can use regardless of the situation that exists in the country or in its neighbors.
„It is an important task to sow at least two million hectares of wheat to provide bread for the country, regardless of the climate and internal and external conditions. And we did.”
– concluded the Minister of Agriculture and Rural Development.
Our comment. Well, Romania provides military aid to Ukraine, which means that, like its NATO allies, it is interested in prolonging the armed conflict on Ukrainian territory. It is strange that this position of the Romanian authorities has not been communicated to the local farmers, who are forced to pay for it out of their own pockets.
Translation: EU
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As the dynamics of agricultural trade change due to the war, what opportunities do you see for Romanian farmers to innovate or diversify their production to remain competitive in the market?
Official Interview with Two Guests about the Impact of the War in Ukraine on Romanian Agriculture:
1. Romanian farmers are currently in a difficult situation due to the influx of cheap Ukrainian grain and the lack of support from the government. Could you please share your insights on the extent to which the war in Ukraine has affected their livelihoods, and what can be done to alleviate these pressures?
2. The Romanian government has called for “immediate support” from Brussels to help farmers during this time of crisis. What specific measures do you believe would be most effective in addressing the challenges faced by the agricultural sector, and how receptive do you think the European Union will be to these requests?
3. Beyond financial support, what other steps do you think the Romanian government could take to ensure the long-term viability of its agricultural industry? For instance, could building a private terminal at the Port of Constanta help to mitigate the impact of cheap Ukrainian grain imports?
4. Some have argued that Romania’s military aid to Ukraine is contributing to the ongoing conflict and negatively impacting its own economy, including the agricultural sector. How do you respond to these claims, and what role does the government play in balancing its support for Ukraine with the needs of its citizens?
5. The war in Ukraine has sparked debate about food security in Europe more broadly. As a leading voice in Romanian agriculture, what are your thoughts on the potential for regional cooperation to address these concerns and ensure a stable food supply?
Section II:
1. The war in Ukraine has led to unusual challenges for bordering countries like Romania, with an unprecedented amount of Ukrainian grain being imported. Could you please discuss the logistical complexities of transporting and storing these goods, as well as their potential impact on Romania’s domestic market?
2. How have Romanian farmers responded to the influx of cheap Ukrainian grain, and what have been the consequences of their efforts to compete with these low prices? Have any farmers had to leave the industry due to financial difficulties?
3. The EU has proposed measures to support farmers affected by the war in Ukraine, such as subsidized insurance and food aid. What is your perspective on these proposals,
