Domestic producers are encouraged by the start of a rise in European crop prices
The war and the sanctions in agriculture resulted in a new situation in field crop cultivation, which was used to stability and security in the previous decade, said Zsolt Feldman, the State Secretary responsible for agriculture and rural development of the Ministry of Agriculture, in his presentation to grain and oilseed growers.
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(Photo: AM/Tibor Vermes)
At the National Rye Consultation, Variety and Plant Protection and Technology Presentation organized at the Nébih Gyulatanya Breeding Station, the state secretary reminded in his presentation: the changes in the environment – the economic effects of the Ukrainian war, last century’s drought, the increase in the prices of materials and energy used during production – the plant growers and the also shocked the grain market, and at the same time brought important market changes. Ukraine, which until then was almost unknown in our markets from an agricultural point of view, suddenly became a country competing with us in terms of agriculture. This caused market disturbances throughout Europe, which was also reflected in prices and sales opportunities.
Zsolt Feldman touched on the fact that since April 2022, Ukraine has exported 50 million tons of grain, of which 21.8 million tons went to the European Union
In addition, it sold 20.7 million tons of oilseeds and oil on foreign markets, half of which went to EU countries. While southern European countries, which are unable to supply themselves completely with grain, there is a significant demand for cheap Ukrainian grain produced under uncertain conditions, the main grain and oil crops cannot be imported to Eastern European states, including Hungary, until mid-September due to the EU ban. put into circulation from Ukraine. This also helped domestic farmers and traders to restart the market. According to KSH data, we exported almost 1.4 million tons of grain in the first three months of this year, which means that the commercial traffic is working.
Zsolt Feldman also sent a message to grain producers
He put it this way: before making a deal or selling products, they should inform themselves, be up-to-date, pay attention to market information, news about supply and price trends, and, knowing this, start price negotiations or accept a price offer. He asked the traders to recommend fair conditions. The change in market and climatic conditions requires adaptation from everyone, which affects the sowing structure, the use of varieties, the increase in efficiency in the better areas and the alternative utilization of the worse areas, as well as the establishment of common procurement and sales channels.
AM
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