OT Forum – Rural Dev. Min.: There are no problems in the supply chain – Measures to deal with speculative practices will be needed

The supply chain is moving smoothly, despite the problems arising from the war in Ukraine, the Greek Minister of Rural Development and Food, Mr George Georgantas, assured, speaking at the OT Forum, warning that the Greek government is implementing all necessary measures to deal with speculative practices.

Specifically, the minister said: “Sufficiency exists in both raw materials and food. What concerns us are the high prices but also the speculative practices”, assured the Minister of Rural Development and Food, Mr George Georgantas. To address speculation, he typically cited the amendment to the declaration of stocks in flour, wheat, fertilizers and animal feed, provided for in the joint decision with the Ministry of Development.

As for the adequacy of raw materials, part of which were imported from the countries in war, Mr Georgantas pointed out that Greece is already in the process of finding alternative suppliers.

In particular, for the supply of common wheat and maize, possible markets are Germany, Hungary, France. In fact, as he explained, we already import 44% of common wheat and 40% of maize from Bulgaria, while from Russia – Ukraine we import 30% of οθρ needs in these two products.

Production cost

Regarding the increased production costs, Mr Georgantas stressed that, in the coming days, the program for the subsidizing of animal feed, amounting to 40 million euros, will be specialized, while he also referred to the measures already taken (adjustment clause, agricultural oil, reduction of VAT on fertilizers, etc.).

“We are trying to reduce production costs and help the producers continue their production. Only in this way, producers will be satisfied with prices”, he said characteristically.

He also referred to the incentives that will be given to producers to cultivate fields that are in fallow, but without the farmer losing eligibility for the aid. As he said, next Monday he will be in Evros, in an effort to encourage farmers to proceed with the cultivation of sunflowers, but also in cooperation with the Association of Manufacturers, which produce biofuel from sunflowers, to proceed with the production sunflower oil.

Couple payments of both wheat and maize

He also referred to the couple payments of both wheat and maize, since 2023, in order to motivate farmers to increase the cultivation of these two products.

He also referred to the search for alternative markets and substitutes for animal feed.

New CAP: The EU will find its footing

In the discussion that takes place at EU level about the time needed for the implementation of the new Common Agricultural Policy (CAP) as well as how this policy could adapt to the new circumstances, the Minister of Rural Development said: “I do believe that the EU will find its footing. It has already announced a series of measures, which will be implemented with national and Community resources,” he said.

He did not express high concerns on the price hikes, being, at the same time, optimistic about the development of the situation, but also the success of the agreements on the alternative import sources. Of course, a partnership with Canada or South America, which have large productions, will entail additional costs.

The need to participate in Cooperatives

The need for farmers to participate in Cooperatives and producer groups, so that the producers do not become vulnerable to speculative practices, stressed the Minister of Rural Development and Food, noting that only 18% of agricultural products are traded through cooperatives.

“By participating in cooperatives we ensure a good price for the products. Unfortunately, in our country we meet only individuals. This is why rge producers are vulnerable,” he said.