The National Council of Agricultural Chambers published on April 4 the Ministry of Agriculture and Rural Development’s response to KRIR’s letter of February 24, 2023, on aid for Poland’s grain producers. In it, the Ministry informs about the possibilities of intervention purchase of cereals.

Below we quote an excerpt from this information:

“Regarding the proposal to introduce intervention purchase, I would like to inform you that according to the provisions of the Regulation of the European Parliament and of the Council (EU) No. 1308/20131, intervention purchase of cereals is made at the intervention price of €101.31/t (474.72 PLN/t according to the exchange rate of April 6, 2023) or under a tender procedure at a price which cannot be higher than the above intervention price. The National Center for Agricultural Support is prepared to make intervention purchases of cereals, but given the difference in the intervention price of cereals and the market price, farmers are not expected to be interested in selling under intervention. No EU member state is allowed to carry out intervention buying under rules other than those set out in the EU’s Common Agricultural Policy. Poland is petitioning the EU to raise the intervention price for cereals.

The Ministry of Agriculture and Rural Development is closely monitoring the situation in the grain market and farmers’ problems. We are aware that the impact of grain imports from Ukraine translates negatively into liquidity in grain trade on farms and a decrease in profitability of agricultural producers. Therefore, a number of measures have been taken to provide financial support to grain producers.

On the other hand, grain prices have been falling worldwide since the summer of 2022, and prices in Poland have followed these trends. During the summer, these prices reached historically high levels. The prices of fertilizers and other inputs are also falling. This means that the recent price situation in the market has been shaped less and less by the panic associated with the outbreak of war in Ukraine, and has focused more and more on the fundamentals of the market’s functioning. It should also be remembered that grain prices have an impact on the situation in the livestock, feed and milling industries. For these industries, it is a raw material for production, the prices of which affect the profitability of doing business and the prices of the products produced by these industries.

Source: WRP.pl