Farmers threaten to block ports and customs over Ukrainian grain

Farmers are threatening to block ports and customs if the grain import ban from Ukraine is not extended. They wrote to President Klaus Iohannis, Prime Minister Marcel Ciolacu and several ministers to draw their attention to the fact that if the ban is not extended, prices will collapse even more for farmers in Romania.

“Considering that Romania, together with Poland, Hungary, Bulgaria and Slovakia, made extraordinary compromises to avoid “threats to the world’s food security” and at the same time to provide support to Ukrainian farmers, who are in such difficult times because of the war, by facilitating Ukraine’s agricultural exports, Romania had nothing to lose, as 95% of agricultural products leaving Ukraine remained in the EU, creating serious market disruptions.

Increasing the quantities of grain and oilseeds originating in Ukraine, which are imported or transit the territories of the member states neighboring Ukraine, exert pressure on the prices of agricultural products in the states concerned, especially Romania, saturate storage capacities and logistic transport chains and affect the economic viability of farmers, causing significant losses, because they were put in the situation extremely complicated to capitalize on its products at prices lower than production costs (input expenses, fuels, labor, etc..).

Romania sacrificed itself and facilitated the import and transit at the EU level of 65% of agricultural products of Ukrainian origin, which combined with the indirect effects, namely the substantial increase in the prices of inputs, led to the fact that currently approx. 45% of our farmers are unable to to pay its debts for inputs and installments due in September and October 2023, respectively, due to the very low prices received for agricultural products (wheat, barley, rapeseed, sunflower and corn), which did not cover the very high production costs, caused by indirect effects.

Imported/transit quantities increased because there were no means of surveillance and control. Forcing to double the quantities of “monthly transit by sea” to 4 million tons will create even greater chaos, a collapse in prices and collapse/bankruptcy for many farmers in Romania,” the letter sent by the representatives states farmers.

They point out that if the ban on imports is not extended after September 15, prices will fall even more for farmers in Romania and the purchase of agricultural products from our country will be significantly reduced. Farmers claim that transport and storage infrastructure is insufficient and is under constant pressure.

“At the same time, the operationalization in Romania of the corridors of solidarity with Ukraine, on the one hand, allowed the transit of products on the territory of Romania with the destination of intra-community trade, but also import from Ukraine to Moldova, import from Moldova to Romania, as agricultural products in documents of Moldovan origin, although they were produced in Ukraine, transported including by means of transport from Ukraine. Moreover, exports were made to third countries through Romania, thus creating premises for the unloading of important quantities in our country and for which we risk losing the trust of our partners our established ones because it was mixed with Ukrainian goods that do not meet the same criteria as those produced in the EU,” according to the quoted source.

“Although it was said that between 15.03.2023-15.09.2023 the imports of wheat, barley, rapeseed, sunflower and corn were prohibited in Romania, Poland, Hungary, Bulgaria and Slovakia, this was not respected by the European authorities, Ukrainian and national, as evidenced by the statistical data attached to this open letter,” say the farmers who claim that “traders, oligarchs and multinational companies benefited more from this support” and Ukrainian farmers less. “The so-called compensation for the causes created by the imports from Ukraine in the amount of approximately 40 million euros, represents 1-2% of the damage caused to the farmers and the Romanian state. Although the amounts are extraordinarily small, even these have not been collected until today from today”, say the farmers.

Under these conditions, they demand that several measures be urgently implemented:

• The immediate extension of the ban after 15.09.2023 on imports from Ukraine and other states, but originating from Ukraine, of wheat, barley, corn, sunflower, rapeseed and oil , throughout the duration of the war and the tightening of conditions to ensure compliance.
• The registration of contracts in a verifiable database and not being able to modify or add additional documents/appendices to increase the initially agreed quantities, starting from 15.09.2023, should no longer be allowed by any means.
• Additional security measures (sealing and monitoring), direct customs controls for all agri-food products coming from Ukraine, with sampling for quality determination in accordance with European legislation and constant public presentation of analysis results.
• Approval in the Council of Ministers of 18.09.2023 of the exemptions for the obligation to leave 5% of the land fallow, GAEC 7 and GAEC 8.
• Stopping the steps to change the procedure with the operational recommendations intended for customs and economic operators to facilitate the access of agricultural products from Ukraine and keeping the existing conditions and rules until January 1, 2022.
• Urgent approval by the Government of the draft Credit Agricol Emergency Ordinance by the end of September 2023 and its entry into force starting from October 1, 2023 in order to support Romanian farmers to continue their activity and be able establish the crops of the new agricultural year.

If these demands of theirs do not receive a solution by October 1, the farmers are threatening to go on a general strike in massive numbers and blockade the port and all customs in the country indefinitely.