The Russian trade ban dominated discussions in the EU this
week with the commission urging
The EU Agricultural Commissioner Phil "the Hulk" Hogan admitted that EU
law did not prevent member states from establishing bilateral trade agreements but
that a common EU approach would be more beneficial than one-off deals.
Which depends on where you are in the supply chain Phil; I
just don’t see a Hungarian dairy farmer giving a toss about macro politics nor
the marginal MP trying to secure the rural vote ahead of a general election.
The FAO have opened an office in Moscow to bolster
cooperation with Russia in agricultural and food security-related matters.
I'm only surprised by this because I assumed they would
already have an office in Russia although the inauguration of the new office is
scheduled for the end of the year so don’t expect too much too soon.
Seven out of nine Belarusian meat processing companies have resumed supplies of beef to Russia previously banned over African swine fever
virus.
Showing my ignorance here but can cows contract swine fever?
According to the office of a German parliament member the
armed conflict in Ukraine is being used as a smokescreen for the seizure of farmland
by foreign firms funded by the World Bank and EBRD. The other story doing the rounds is that Ukraine will be
forced to grow genetically modified crops in return for foreign aid hand-outs.
Personally I don’t buy either of these rumours for a number
of reasons including anyone can secure land in Ukraine, you don’t need a war to
hide behind and growing GM is one thing but who will buy it? Having said that these rumours have been around since last
year and they do keep cropping up so something’s afoot.
Kazakhstan now and according to the analytical service Ranking.kz, the volume
of agricultural investments in the country is up 17% on 2013.
It may be that while Ukraine is on temporary hold as an agri-investment destination then Kazakhstan reaps the benefit, plenty of
potential out there...if it rains.
Still in Kazakhstan and the Minister of Agriculture has proposed dropping
grain export subsidies ($81 million) in favour of spending on supporting farmers, developing seed production and purchasing equipment. Seems sensible.
In the same week Kazakhstan proposes dropping export
subsidies, Russia imposed their export tax priced at no less than €35/mt and current
rumours are the Ministry is considering increasing the rate and extending the term
which has not gone down well at all.
Unlike vodka which has seen the price slashed in Russia.
My topical advice this week then is don’t booze if you are considering signing an extension to a trade tariff, you might do something rash.
Have a good weekend.
Have a good weekend.