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Romania with a new approach to Ukrainian grain

Румъния с нов подход към украинско зърно
In the period May-September 2023, when the European Commission (EC) imposed restrictions on the import of Ukrainian grain, the average monthly import of Ukrainian wheat into Romania increased from 88,000 tons to 100,000 tons, instead of decreasing, said Cesar Gheorghe, trade expert and founder of consulting firm AGRIColumn, in an interview with local media.

"With the help of advance contracts and an extended delivery period for goods whose origin was changed to the Republic of Moldova, we got into the ridiculous situation of importing more goods from Moldova than this country can produce," explained the expert.

According to him, this is the result of the incorrect application of the restrictive measures by the Romanian authorities. Now, after the lifting of the restrictions, to avoid such a situation, Romania needs a well-established quota licensing system with sophisticated mechanisms to check all border points, Gheorghe is emphatic.

The analyst drew attention to the fact that the Romanian agricultural sector has suffered significant losses and is under great pressure. For example, the costs of Romanian farmers to transport grain have doubled since the beginning of the war in Ukraine, and in the port of Constanta, delivery times for Romanian grain are delayed by up to two months.

"And the costs of the waiting time are borne by the seller, i.e. from Romanian farmers. A train can wait up to a month at the port of Constanta to unload, a truck can wait ten days, and 400-500 barges can wait on the water.

Road transport also suffered, because before the war, about 17 euros per ton was paid for a distance of 170-180 km. Today, the price starts at 25-28 euros per ton."

"The transfer of grain through the Bastroe canal is also a serious risk. It's going into Russia's calculations for a potential attack, and I don't know how long we'll have to wait until we see something like that. And a ship hit and sunk in that location will effectively block the entire waterway," Gheorghe concluded.

In terms of trade, at the beginning of the week the prices of grain for delivery to the port of Constanta were: bread wheat - 212 EUR/ton, feed wheat - 195 EUR/ton, corn - 192 EUR/ton, barley - 176 EUR/ton, sunflower – 383 dollars/ton.

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