EU PROPOSES HIGHER TARIFFS ON GRAIN FROM RUSSIA, BELARUS
The European Commission has proposed higher tariffs on grain products from Russia and Belarus that it said will suppress imports but not affect exports to third countries. Depending on the product, the tariffs will increase to either €95 ($103) per tonne, or to an ad valorem duty of 50%. In addition, Russia and Belarus will no longer have access to any of the EU’s WTO quotas on grain that offer better tariff treatment for some products. The commission said it seeks to prevent market destabilization through any future redirection of Russian grain products onto the EU market and tackle Russian exports of illegally appropriated grain produced in Ukraine.
The increased tariffs also would apply to Belarus in light of the country’s close political and economic ties to Russia. Including Belarus also prevents Russia from using it to circumvent the new tariffs, the commission said. The transit of cereals, oilseeds and derived products from Russia and Belarus to third countries is unaffected by the proposal. This shows that the European Union remains fully committed to promoting food security globally, especially when it comes to developing countries, the commission said. Russia exported 4.2 million tonnes of cereals, oilseeds, and derived products to the EU in 2023, worth €1.3 billion. Belarus exports limited quantities of cereals, oilseeds, and derived products to the EU in 2023 — 610,000 tonnes, with a value of €246 million.
(Link: WorldGrain)
SAUDI ARABIA’S WHEAT PRODUCTION CONTINUES TO GROW
Saudi Arabia continues to ramp up its wheat production and is expected to produce 25% more in 2024-25 for a total of 1.5 million tonnes. Wheat is grown under a voluntary program and limited to small farmers who are licensed by MEWA to grow either wheat or alfalfa hay. In the past, farmers preferred alfalfa hay as it was more profitable. However, the MEWA set wheat prices at $467 per tonne last year. Prices have yet to be set for the new crop, but farmers anticipate it will remain close to last year’s. Consumption is expected to increase 5% to 4.75 million tonnes.
(Link: WorldGrain)
