Rus News Journal

EU has lost control over wheat market

the Situation in wheat world market causes serious fears in the western experts. Improbably poor harvest grain, bad weather became fault to which, and also all increasing consumer demand and record-breaking low stocks of grain - minimum for last 25 years - have already led to a double rise in prices for this product in the majority of the countries of the world.
the list suffering from - for shortages of grain of the states included also the European Union countries. Partly in so pitiable position of EU has tired out itself: expecting this year huge stocks of wheat, it has meaningly devastated almost all storehouses, having sold during an advertising campaign 2006 - 2007γγ. The grain lion`s share on home market. And meanwhile, as experts mark, this wheat quite could suffice for struggle with “ agrofljatsiej “.
However solve a problem grain intervention could also. As the agricultural policy of Europe allows farmers to spend her at support price: hardly 100 euros for grain ton there are more. But the rise in prices has made this system unattractive, and in last season within the limits of this program it was not possible to sell any ton of grain, transfers Reuters.
At present exists two basic ways of an exit from a current situation: or by increase in internal manufacture, or opening of borders of EU for import. “ at Eurocommission remains very much, it is not enough levers of influence on the market “ - the source in EK has shared alarm.
Basically, Europeans could repeat also the steps undertaken in 1996 - 1997 when all crop has been destroyed by a strong drought. With a view of protection of the market of EU then has imposed the tax to export. However official representatives do not consider this variant as “ saving “. “ We are not going to impose the tax to export. It will not solve a problem “ - representative EK Michael Mann has informed.
also the Eurocommission has suggested to cancel, at least for time, the obligation of farmers to leave 10 % of the earth raw. It will allow to increase stocks of grain to 10 - 17 million tons. In the end of October this offer will be exposed on Ministerial council voting, and many expect that EU will remove this restriction at revision of the general agrarian policy more close by the end of this year.
but farmers who strongly depend on agricultural production, consider that should be considered and other measures, such as opening of the European borders for import. “ the prices for wheat have reached improbably high levels in all sector. We should find necessarily the decision of this problem “ - has declared one of them to Reuters agency.
one more of decisions is a cancellation of the tax to import of large parties of wheat which has been established in 2003 for restraint of huge import from the countries of east Europe. One of the officials approached to Eurocommission, considers this step quite realised, but dangerous enough. “ theoretically it is possible. But it will be extremely difficult to enter it again if suddenly there will be such necessity “ - he has specified.
well and last variant offered the European Union by a number of sellers and manufacturers of foodstuff - revision of restrictions on import genetically modified (GMO) a crop with which the world market abounds. “ import of genetically modified corn even if it also will cause the public protest, can really solve a problem with shortage of grain in the European market “ - one of manufacturers of forages has noted. We will remind that at present in EU cultivation of genetically modified production is limited to a minimum from - for serious public oppositions to manufacturers H`M - organisms.