The Ukraine-Russia war has caused a deep crisis on the global feed market, especially on the European feed market, because the Black Sea region meets a significant portion of the world’s grain and oilseed needs. However, the war has caused a very serious disruption in the supply chain.
The heads of states and governments of the European countries, who came together a week after the start of the war, announced the Versailles Declaration. In the 27-item declaration, the title of food was also included. Reducing dependency on imported agricultural products was the main theme of this title and the declaration explained the target in this direction with the following sentences: “We will improve our food security by reducing our dependencies on key imported agricultural products and inputs, in particular by increasing the EU production of plant-based proteins.”
This declaration was the first expression of the crisis that could arise due to the war. The European Feed Manufacturers’ Federation (FEFAC), which made a statement after the declaration, also pointed to the problems to be experienced in the supply of raw materials. Asbjørn Børsting, President of FEFAC, said in the statement: “The European Union needs to establish a comprehensive EU food and feed security contingency plan, prioritising food and feed use of grains and oilseeds, both covering the short-term impacts linked to the loss of Black Sea grain deliveries from Ukraine, but also for the mid-term to buffer the Ukraine crisis impacts, which will be felt for a long time. The EU needs to support innovative plant breeding technologies and good agricultural practices to boost its own grain, oilseeds and vegetable protein production”.
However, it was not possible to increase the production of grain, oilseed and plant-based protein in a very short time and make it available to the feed industry. It could only be part of a long-term goal. Although the market is tried to be relieved with short-term measures, the problem in the supply of feed raw materials over the Black Sea continues to put a serious pressure on feed prices for months. However, the grain shipment agreement among Turkey, Ukraine, Russia and the United Nations (UN) was finally concluded and the “Grain Corridor” has been actively opened.
The maize-laden Razoni, which is the first ship to leave Ukrainian ports, continues its journey towards Lebanon’s Tripoli Port. Panama-flagged Navistar carrying 33.000 tons of corn to go to Ireland, Maltese-flagged Rojen loaded with 13.000 tons of corn to England, and Turkish-flagged Polarnet carrying 12.000 tons of corn to Turkey departed from different ports in Ukraine. These shipments are expected to have a relief effect in a short time. However, we will see in the process whether this will meet the expectations or not.
The solution that can offer more than this agreement will be the end of the war as soon as possible… I hope we will have the chance to see this very soon.
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