Keys and unknowns about the agri-food impact of the war in Ukraine

Published 2022년 2월 26일

Tridge summary

Russia's attacks on Ukraine are causing uncertainty in the agri-food markets, with potential impacts on cereal supplies and food production. Spain, which relies heavily on Ukraine for corn and sunflower purchases, faces a negative agri-food balance with Ukraine but a positive one with Russia. The conflict comes at a time when energy and fertilizer costs are rising, and Spanish agricultural organizations and cooperatives express concerns. The conflict could also affect the competitiveness of SMEs. The 2014 Russian embargo on Western countries and the 2013 ban on EU meat imports serve as precedents, with the gap from the Russian market for Spanish fruit and vegetable exporters not yet fully compensated.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the agri-food field, Russia's attacks on Ukraine generate unknowns and are even causing "never seen situations" in markets such as cereals, despite occurring after two historic years due to the pandemic. These are some keys to understanding the possible consequences of the conflict in the countryside and in food production. Ukraine is a fundamental supplier of raw materials for Spain, a country with a deficit in cereals and oilseeds. In 2021, the agri-food balance with Ukraine showed a negative balance of 853.9 million euros for Spain (-544 million for cereals and -416 for oils and fats), according to data from the Secretary of State for Trade. Spanish exports to Ukraine reached 170.5 million and imports from that origin 1,024.4 million. Spain buys from Ukraine 27% of its corn imports and 62% of its sunflower purchases. On the contrary, there is a surplus in sales of fishery products (37.3 million). As for the agri-food balance with Russia, it gives a positive balance for Spain ...

Source: PEefeagro