Europe Farmer Uproar; Cheap Ukraine Grain

glasshouse

Member
Location
lothians
This is my own take of things since the Ukraine invasion. Russia invaded Ukraine which is the breadbasket of Europe, the term that was used a lot at the outset. Supplies of grain were now not being exported and prices were rapidly escalating, IMO the west somehow convinced Russia it was looking even more bad, if they did not agree to some export deal however it now looks as if the West outsmarted Russia on this occasion and have been using this grain to help stabilise prices in their own countries. The knock on consequences of dear grain was having bigger implications and far reaching consequences than originally feared and had to be contained at all costs. However i believe supplies of grain from Ukraine are dwindling and Ukraine is nowhere near producing the amount it once was. This will continue until the war ends, who knows when this will be unfortunately:(. Going forward is going to be full of large swings in pricing if something drastic happens. My view is that countries/large conglomerates have not been worried as log as it got it hands on cheap grain which Ukraine was desperate to get rid of. I bet Ukraine was not selling its grain at £300/tonne, therefore these countries were effectively using Ukraine in it's darkest hour.
We do not live in a perfect world and wars have always existed! Growing up I did not realise the Iran -Iraq war ever existed. We have the Gaza strip/Israel etc which I do not understand about but will probably still be going long after I am dead. The West have ensured regimes changes occurred in Iraq and Afghanistan but I am unsure if we have not made things a hell of a lot worse.
I think Russia/Putin knows he has been outsmarted on the grain corridor but that they are now playing the long game, so who knows what will happen. Expect the unexpected!
The grain corridor benefits russia more than ukraine
 

Hindsight

Member
Location
Lincolnshire
Sorry for answering a question not aimed at me.
In the pigmeat sector, soaring feed prices did not lead to increased pig prices quickly enough as retailers wanted to keep prices down.
Pig producers were already greatly weakened from the "rolling" of slaughter pigs during 2021 and early 2022.
So many went out of business, not just here but globally, so pig production is down 20% and still falling and there is an increasing shortage. Pig prices are now at record high and increasing.
Utter short termism on the multiple retailers and large processors part means that instead of paying a bit more a year ago to secure supplies, they will now have to pay a lot more and not get enough.
The same applies to the egg sector and the chicken meat sector.
Thank you for you reply Suffolk Serf. I have followed your awful situation. I do hope things work out for you.
 

Tractorstant

Member
Location
Monaco.
https://www.lefigaro.fr/economie/la...0ONse1rAjAAMrfhK8biEFRsMxU#Echobox=1681140334

This is an ubiquitous situation for one of the main agricultural powers in the world. From April 25, France will no longer be able to export its cereal production outside of Europe. On this date, the use of phosphine, an insecticide, will indeed be prohibited in France to treat cargoes of cereals in the holds of ships. However, the fumigation of this product, used in tablets, is compulsory in many client countries in France, starting with North Africa, in order to be able to unload the goods.

Seems like Les Frogs have their own battles, too with the government.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Question for you both. As a consumer and not a farmer I purchase food. How much of the food inflation is actually down to the price of your wheat? Appreciate it keeps being mentioned in official reporting of inflation and it sure gripes with farmers as your posts reflect. But my loaf of bread has suffered inflation in all aspects of the processing, packaging, haulage and retailing in addition to the price of wheat. I can see where a food product with less processing the raw material unprocessed item might have greater impact on the final retail to me price. But am unsure the price of wheat is as important a geopolitical issue in western economies as might like to think? Interested in views.

i believe as farmers we see about 1% of the price of a load of bread

…….. so inflated wheat prices are almost inconsequential
 

andybk

Member
Livestock Farmer
Location
Mendips Somerset
supermarkets are the devil that is destroying uk ag

The NFU need to stop accepting their sponsorship cash and start fighting them rather than blaming government for everything
Its this uk obsession with "we are cheaper than them " attitude the supermarkets have , in many instances the general public couldnt give a ** as long as they are competative with the rest , they have all been in a 50 year price war and we are paying for it , they need a different message
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Its this uk obsession with "we are cheaper than them " attitude the supermarkets have , in many instances the general public couldnt give a ** as long as they are competative with the rest , they have all been in a 50 year price war and we are paying for it , they need a different message

they need regulation

Food supply and therefore our entire rural economy is in the hands of far to few people whose first duty is to shareholders

the NFU need to get out of bed with them and start lobbying for such regulation ......... they have been bought off
 

Humble Village Farmer

Member
BASE UK Member
Location
Essex
If the Ukrainian wheat is going to the West, what are the starving Africans buying? Russian?
Not impossible that Russia is moving wheat into "neutral" countries below market value in order to buy goodwill.

Some of these countries are poor and undemocratic so easy to influence.

Of course, that's assuming Russia can afford to let wheat go below market value. It's said that their oil is already going to China and India at a discount.
 

delilah

Member
they need regulation

Food supply and therefore our entire rural economy is in the hands of far to few people whose first duty is to shareholders

the NFU need to get out of bed with them and start lobbying for such regulation ......... they have been bought off

"We need to learn from nature. In nature there isn't uniformity, but rather there is diversity. We have allowed our food system to go down a dead end road of ever fewer producers, ever fewer processors and ever fewer retailers. We as an industry have been complicit in this. We acknowledge our failures in supporting a policy of fewer farmers and greater food miles. We will now work with our allies in the environmental and social justice movement to bring about change. We will explain to Government the benefits of a more diverse food system, and lobby hard for the necessary measures"

We need a national representative body that says that. Thing is, whenever I suggest it on here it is variously ignored/ p!ss taken. You can only conclude that we get the representation that we deserve.
 

Sailorsam

Member
Location
Merryland USA
If the Ukrainian wheat is going to the West, what are the starving Africans buying? Russian?
I think they're going hungry.


U.S. officials say food insecurity in Africa will worsen this year because of climate change, conflict, and market disruptions caused partly by Russia's war on Ukraine.

"As much as I wish I could bring the hopeful message that the food crisis will be over this year, we have to recognize that the chief drivers of the food crisis are still with us," Fowler said. "And it behooves us, therefore, to be looking at solutions for all of those, or adaptive measures. That's the situation as I see it today."
 
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european grain has been exported
countries that need grain in a specific time cannot rely on ukrainian so pay a bit more for gaurateed supply

just as oil and fuel is now going from russia to the far east several weeks sailing
and Europe is buying fuel and oil from USA or the Middle East longer haul
rather than Russia 4 days haul

grain is going over the border from Ukraine to it’s European neighbours who then export grain their western grain to third countries

what price milling wheat to Liverpool
compared to feed wheat out of the south coast
any one that grows go 4 feed has to accept that they are not available to 75% of the market
 
Wheat levels at £250 ton are not "stratospheric", they are prices where producers can make a profit.
All my life people have been waiting for jam tomorrow, because yields cannot outgrow worldwide population growth, and land is not being made anymore.
I think we now know that the moment the odds move towards producers, governments will always tilt them back in favour of the big corporations who sponsor them, by any means available.
how are the government managing to alter the world wheat price?
 

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