Ukraine grain row extends to sugar, poultry imports to EU

Amid a surge in Ukrainian exports to the EU, the European Commission insists trade is flowing well but admits there is “some risk” of imports driving down prices and threatening local production for poultry, eggs and sugar.

“We do not see any very significant adverse development on the EU agricultural market,” the Commission’s deputy director for agriculture Pierre Bascou told MEPs who raised concerns about the increase of Ukrainian imports in a meeting of the European Parliament’s agriculture committee last week. 

However, Bascou admitted that the EU executive had identified “some vulnerability and risk” in sectors like poultry, eggs and sugar. “This is an element we are monitoring very closely,” he added.

The EU temporarily lifted restrictions on imports from Ukraine in June 2022 following Russia’s invasion of the country, which led to an influx of Ukrainian goods into the EU market that pushed prices down, especially in frontline countries – namely Hungary, Poland, Slovakia and Romania. 

While cereals and oilseeds account for most of the imports – Ukraine being one of the world’s largest grain exporters – MEPs also pointed to other agricultural products.  

“Ukrainian poultry meat [exports to the EU] have gone up by about 150% compared to the pre-war situation, and eggs (…) by over 100%,” said centre-right MEP Peter Liens. 

In response, Bascou pointed to a decline in EU egg production in recent months, caused by “the surge in input costs and [the] impact of avian flu influenza outbreaks”, and a simultaneous increase in consumer demand.

The EU remains one of the world’s largest poultry meat producers and a net exporter, with an annual production of around 13.4 million tonnes, according to EU data. 

However, the Association of Poultry Processors and Poultry Trade in the EU (AVEC) warns that the EU’s competitiveness is declining and says the increase in imports from Ukraine, but also Brazil and Thailand, “is very worrying”.

Sugar imports a sticky point

Tensions are also rising over sugar, especially in France. “Factories have been closed,” said French MEP Anne Sander. 

Ukraine’s sugar exports to the EU rose from 25,000 tonnes between October 2021 and July 2021 to 390,000 tonnes in the same period last year, according to EU data.

The French sugar beet growers association (CGB) called for “a clear answer from the European Commission on the future management of this inflow of sugar” in a presentation on 28 November. The association fears that increased volumes could drive down prices and harm local producers.

However, Bascou pointed out that “[sugar] prices remain at a very high level (…) at more than €800 per tonne”. 

The EU average sugar price “reached record high levels in 2023”, according to EU Agriculture Commissioner Janusz Wojciechowski. “Due to a severe summer drought, the sugar production for 2022/2023 is estimated to be almost 12% lower compared to the previous year,” he said on Sunday (3 December) in a written answer to MEP Peter Jahr. 

In the same vein, Bascou urged MEPs not to forget that the EU “was dependent [on Ukrainian imports] before the war and [remains so] after the war”. He added that Hungary and Romania are “net importers” of sugar. 

Frontline countries not backing down on grain

Meanwhile, the European Commission confirmed to Euractiv that national bans on Ukrainian imports are still in place in Hungary, Poland and Slovakia, which unilaterally imposed them in September, and expressed its concern. 

EU Commission Vice-President Valdis Dombrovskis met Slovak deputy prime minister Peter Kmec on Friday (1 December) to discuss ways “to de-escalate the situation”, a Commission spokesperson told Euractiv.

Dombrovskis and Kmec spoke about improving the so-called “solidarity lanes”  – alternative land routes set up by the EU for Kyiv to export its grain and oilseeds after Russia backed out of a UN-brokered Black Sea deal that allowed safe passage for the cargo ships.

[Edited by Nathalie Weatherald]

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