Features of the supply of rye to the EU countries

Rye is a typical cereal grain.

Kvass, flour, starch are made from it and used as raw materials for the production of alcohol. In addition, this crop is often used as animal feed. In Europe, rye does not grow in sufficient volumes, therefore EU countries are forced to buy this crop from other suppliers. One of the main producers of rye in Europe, due to its proximity and good grain quality.

What is needed for the supply of rye to the EU

In order to supply grain of Ukrainian origin to the European market, local producers must take into account the requirements for product quality. This means that when growing a crop, a minimum amount of GMO additives should be used (including in fertilizers, remedies for diseases and pests). The purity of grain must be confirmed by the relevant documents, which are already recognized in Europe, which means that farmers do not need to obtain European quality certificates. In order to find out the list of Ukrainian grain necessary for importing into the EU, you need to go to the EAEU website.

By the way, only the countries of the Northern Hemisphere can provide conditions for the qualitative growth of this culture, because it is here that the most favorable climate for this has been created. Accordingly, supplies of Ukrainian rye to European markets will only increase in the future. By the way, Poland is the largest partner for Ukraine in terms of rye imports. Also, Ukrainian grain found a sales market in Bangladesh, Israel and the Philippines. However, Europe has been a key partner for our country for several years now, however, in 2020, due to a pandemic and drought, this sales market underwent some changes.

Features of the import of rye

Since the beginning of 2020, good news awaited Ukrainian farmers – in Europe, they simplified the supply of several types of Ukrainian-made grain, including rye. At the same time, the corresponding provision was valid only in the period from April 1 to June 30, 2020 – for this period, grain from Ukraine was exempted from import customs duty. After this period, the European Commission decided to increase the duty to 5.32 euros per tonne. This was due to the current situation in the global market – pandemic and drought, which significantly affected the economy of all industries. The European Union has the right to establish duties of different amounts for different types of grain. The specific duty rate should be calculated based on the difference between the EU procurement intervention price for grain (which is € 101.31 per tonne) with a coefficient of 1.55 and the actual price (consisting of cost, insurance and freight) for the import of a certain type of grain via the port of Rotterdam.

It should also be remembered that the prices for this grain are very susceptible to the general situation in the corn market, and all fluctuations are tied precisely to it.