World Grain - February 2022 - 32

FEATURE: EASTERN EUROPE PRODUCERS FIGHTING UPHILL BATTLE
of the production costs for farmers growing their crops
in Europe, according to Copa-Cogeca.
Tadeusz Szymańczak, a press officer of the Polish Union
of Cereal Producers, said high production costs were not
just cutting profits in the grain industry. Some farmers
have seen their businesses begin generating losses.
" For many years I have been calculating the profitability
of cultivation, " Szymańczak said.
" In October, I made calculations with
new production costs and prices, and
I got scared. Even after taking into account
the subsidies, it turned out that
the production of cereals was in the
red zone (operating at a loss). Even
with the current price of wheat, the
production generated a net loss. "
Szymańczak said most farmers
managed to avoid losses thanks to
some additional state aid introduced
by the government, including fuel
subsidies.
Some parts of Eastern Europe had
up, it is not the best time for the European Commission
to embark on some major initiatives, which could further
hamper grain producers.
" Uncertainty does not contribute to stabilizing the
The high prices
of fertilizers make
things tough. As
a result, a large
number of (grain)
producers simply
abandoned them.
better stocks of fertilizers than others
in 2021, so they managed to avoid problems in 2021 but
are now expecting them in 2022.
" We registered the higher prices of fertilizers since
August-September, so it did not affect last year's harvest, "
said Vladimíra Debnárová, executive secretary
of Slovakian Cereals Growers Association. " However,
when it comes to the 2022 harvest, the situation is different.
Farmers started to buy inputs in autumn, and
prices of fertilizers, seeds, PPPs were rising sharply.
It depends on the farmer, but the purchased amounts
decreased, and it will have impacts for sure - maybe
on quality and also quantity of grain production. "
Igor Jakubička, chairman of the DEVIO Nové Sady
Agricultural Cooperative and deputy chairman of the
Slovakian Cereals Growers Association, said that 2021
was a relatively successful year for Slovak farmers who
decided to trade on the free market since they managed
to catch an unprecedented price level. Those having
long-term contracts were not so fortunate.
Jakubička said the feed price last year also broke
all possible records, reaching €200 per tonne, making
some part of the livestock business unprofitable.
" In our company, the ratio of sales from plant and
animal production is about 50:50, " he said. " And so
what comes into one of my pockets leaves the other. "
He also noted that in terms of feed price, the prospects
of 2022 also look rather gloomy.
Green Deal fallout
Some farmers in Eastern Europe are confident that during
the COVID-19 era, when the production costs go
32
Jerzy Grabinski, Polish
Union of Cereal Producers
market situation in our region, because the effects of
changes in the European Union's Common Agricultural
Policy in the coming years are debatable, " the Slovakian
Cereals Growers Association said,
adding that the provisions of the EU's
Green Agreement are causing great
concerns among local farmers.
" The intention to reduce the use of
artificial fertilizers by 25%, as well as
some plant protection chemicals, while
increasing the share of organic production
in a quarter of the agricultural area,
does not provide optimistic prospects
for increasing the volume of grain
production in Europe, " the Slovakian
Cereals Growers Association said, adding
that concerns are lingering among
Slovak grain growers as to whether
they can ensure grain production in
sufficient quantities and quality in the coming years.
The idea backed by some Eastern European farmers
is that the Green Deal implemented through the
Farm to Fork Strategy would bring them numerous
problems. A member of the Bulgarian National Grain
Producers Association pointed out that support from
the CAP budget, the EU's huge farming subsidy program,
is distributed rather unevenly.
The source claimed, however, that 80% of the funding
goes to only 20% of the EU's largest farms, most of
which are in Central and Western Europe.
" Big businesses are more prone to the challenges associated
with the transition to the green economy, " the
source added. " I think big market players can turn this
reform to their benefit, expanding their business at the
expense of smaller players. "
Eastern Europe requires large investments to become
more effective and beat the targets set by the CAP. For
the long-term development, Slovak grain producers require
investments of €2.36 billion, Debnárová estimated.
" If the calculated and desired investments would be
available, we could achieve better chance to challenge
the competition and offer better prices to the customers, "
Debnárová said, adding that this money is needed
for investment in various infrastructure projects during
the coming decade, but there is no guarantee they
would be really sourced.
Looming GMO fears
Most countries in Eastern Europe strongly oppose genetically
engineered (GE) crops, mulling putting adFebruary
2022 / World Grain / World-Grain.com
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World Grain - February 2022

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