Ukraine was the second supplier of cereals to Spain, behind Brazil. The war that is happening in Ukraine and the Russian invasion will completely affect the production of that country and that will make the prices of the entire chain more expensive, including local agri-food and meat production
The Minister of Agriculture, Fisheries and Food, Luis Planas, has analyzed the situation and the consequences of the Russian invasion in Ukraine in the agri-food markets and meat production.
“We are facing an exceptional situation, where the order of priorities changes” declared Planas. Something that was discussed at the extraordinary meeting of the Council of Ministers of Agriculture of the EU.
22% of the cerealsimported by Spain (2.7 million tons) came from the Ukraine. It also produced oilseeds. Currently, as is logical, trade between the two countries has been totally blocked and paralyzed, therefore the supply chain will have to be temporarily modified. Both cereals and oilseeds were a raw material to produce feed for animal feed.
If Vladimir Putin believed that Ukraine was going to be a walk, he was wrong, because the Ukrainian resistance is being remarkable, despite the great numerical inferiority and war resources.
This means that the conflict can last over time, perhaps months… Which causes a lot of uncertainty in markets and supply chains, and creates inflation
Farmers and ranchers, who are a fundamental piece, undervalued and underpaid in the chain, should see their pressures and their low profit margins alleviated.
Now with the conflict in Ukraine and disruptions in supply chains, with the consequent price increases, even more emphasis should be placed on it.
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