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Unintended Consequences of Ukraine Invasion

03/27/2023

According to a March 20th posting in Food Ingredients, farmers in nations adjacent to Ukraine are facing competition from trans-border shipment of low-priced agricultural commodities.  These include wheat, corn, and oilseeds.  These products are now entering Poland, Bulgaria and Romania without tariff-free.  It is hoped that extension of the Black Seed Grain Initiative will take pressure off the neighbors of Ukraine with restoration of sea freight for export to traditional markets.

 

The European Union has promised farmers in member countries compensation to be disbursed during the third quarter of 2030.

 

Farmers in Eastern Europe are also affected by rising cost of energy, fertilizers and transport in part attributed to the invasion of Ukraine in addition to the conventional restraints of weather and crop performance.