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Ukraine: S&D, Oilseed and Vegoils market, May 8, 2008: Agricultural policyUkrAgroConsult In early May, alarming reports about Ukrainian sunoil's quality came from Europe. The first response of the EU was rather tough. An increased content of hydrocarbonates, i.e. lubricating mineral oils, was revealed in the sunoil. On demand of the European Commission, a 40 KMT parcel was withdrawn from sale. At that, Ukraine's Vice Prime Minister stated that all that was intrigues of evil-wishers who intend to undermine the good reputation of Ukrainian sunoil. A couple of days later, the European Commission's position significantly relaxed, though for unclear reasons. The EU promises not to take any strong measures, but does not rule out imposing a moratorium if the contamination repeats. It is unlikely that anybody will learn soon what happened during these days in reality. It seems the European Commission found itself in the position «to prohibit is not possible to permit» and failed to choose the place where the coma should be put to clear up the situation. Withdrawing all Ukrainian sunoil from the world turnover, which seems logical after the contamination, would lead to a hike in vegoil prices and a next aggravation of inflation, including that in Europe. In March, the inflation rate exceeded 3% in the EU. On the other hand, bad quality of Ukrainian sunoil was initially reported at least as early as the middle of March. It seems possible to physically withdraw 40,000, but what to do with sunoil already sold through the retail network before? UkrAgroConsult opinion is that the European Commission did not decide to take severe measures against Ukraine under these conditions. Moreover, export quotas for sunoil were promptly introduced in UKraine (probably after the gove't was frightened by the first reports on the contamination) which actually stopped sunoil exports. Simultaneously, the government promises to establish a working group to control sunoil quality. The EU is a key market for Ukraine. The EU share in Ukrainian sunoil export is more than 50% and expands from year to year. Loss of this market may have an extremely adverse impact on Ukraine's fat-and-oil industry and contribute to the industry collapse.
On the other hand, Ukrainian sunoil plays an appreciable role in Europe's vegoil consumption pattern. Right the increased sunoil import allowed Europe to switch a significant part of rapeseed oil to production of biodiesel, which delights the average Europeans so much. And against the background of the global vegoil deficit, Europe hardly will refuse from imports from Ukraine.
Date: 15.05.2008 Comments:Leave your comment
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I can't believe our itohtriuaes are doing this to us. We are ordinary people and there is obviously not a lot we can do to change the situation. There have been strikes and protests, haven't there? There was a whole revolution in 2004. Is there anything else ordinary people can do? I have close family in England and EU integration would mean a lot personally to me, I would do my best to fulfill EU's requirements to be able to live in a freer country with less borders between me and the people I love. Thus far me and the like have no other choice but to hope this will change after the election.
I can't believe our itohtriuaes are doing this to us. We are ordinary people and there is obviously not a lot we can do to change the situation. There, 14.04.2012 06:48:41