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The Russian invasion of Ukraine and the impact on grains and oilseeds markets

Date

02 Mar 2022

Sections

Trade & Society

Brussels, 2 March 2022 - COCERAL, FEDIOL and FEFAC share their deep sorrow with the Ukrainian people, as the humanitarian tragedy is unfolding in the country and the Russian Federation continues its unprovoked invasion of a sovereign state.

Companies in our sectors across the board are taking steps to ensure the security of their employees on the ground and seek to help where they can. They also have to continue honouring their contracts, conscious that the importance of Ukraine’s supply of agricultural raw materials and ingredients to the EU is such, that our inability to import from that country will create severe shortages, both for the feed and food industries.

The Black Sea region represents an important supply of grains and oilseed products for the world market. Ukraine in particular exports about 60 million tonnes of grain to the world. It was expected in the current marketing year that Ukraine would export about 33 million tonnes of corn and 24 million tonnes of wheat. For Europe, maize represents the main imported product from Ukraine with a yearly average of 11 million tonnes, but also other commodities such as sunflower oil, with about 2 million tonnes.

COCERAL, FEDIOL and FEFAC consider essential to address immediate practical issues for the vessels arriving in Europe from Ukraine, to anticipate potential adverse impacts for the food and feed supply chains and stress the urgent need to set up contingency plans that will help mitigate the loss of the Black Sea origin for these commodities.

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COCERAL is the European association of trade in cereals, oilseeds, pulses, olive oil, oils and fats, animal feed and agrosupply. It represents the interest of the European collectors, traders, importers, exporters and port silo storekeepers of the above-mentioned agricultural products. COCERAL’s direct members are located in 14 EU countries, with one European association, Unistock representing the professional portside storekeepers for agribulk commodities within the EU and one associated member in Switzerland. With about 3,000 companies as part of COCERAL national members, the sector trades agricultural raw materials destined to the supply of the food and feed chains, as well as for technical and energy uses. Gafta is an extraordinary member of COCERAL.

FEDIOL, the EU vegetable oil and protein meal industry association, represents the interests of the European oilseed crushers, vegetable oil refiners and bottlers. FEDIOL members are 10 national associations and associated company members in 7 other EU countries. With about 180 facilities in Europe, the sector provides 20,000 direct employments. Its members process approximately 55 million tonnes of basic products a year, both of EU origin and imported from third country markets. The sector processes notably rapeseed, sunflower seed, soybeans and linseed into oils and meals for food, feed, technical and energy uses essentially on the European market.

FEFAC, the European Compound Feed Manufacturers’ Federation, represents 23 national Associations in 23 EU Member States as well as Associations in Switzerland, Turkey, Serbia, Russia and Norway with observer/associate member status. The European compound feed industry employs over 100,000 persons on app. 3,500 production sites often in rural areas, which offer few employment opportunities.

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