The European Commission has lifted temporary bans on Ukrainian grain exports after Ukraine agreed to improve control over its agricultural shipments. However, Poland and Hungary are still imposing their own restrictions on Ukrainian grain, despite objections from the European Commission.
Poland’s Prime Minister Mateusz Morawiecki announced that they would extend the ban to protect Polish farmers, while Hungary also published a decree to block certain Ukrainian agricultural products. The bans were initially implemented to prevent a flood of cheap Ukrainian imports that could harm local farmers.
The European Commission had committed to phasing out the bans by September 15th, but Poland and Hungary decided to maintain their restrictions. The situation remains unresolved, with ongoing negotiations between Ukraine and the European Commission.
Toxicity and genetically modified organisms (GMOs) were found in corn shipments from Ukraine to Hungary in March 2023. Hungarian Agriculture Minister Istvan Nagy expressed concern about the low production costs and prohibited farming practices in Ukraine. Strict quality control in Hungary detected cases of mycotoxin contamination, GMO presence, and soybean contamination.
The influx of cheap Ukrainian agricultural products has caused economic difficulties for Hungarian farmers. As a result, Hungary has temporarily banned the import of Ukrainian grain and other agricultural products, while maintaining transit. They hope the European Commission will address the issue within two months.
In August 2023, the Ukrainian Parliament passed a law to regulate genetic engineering and control the use of genetically modified organisms (GMOs) and products. The law aligns Ukrainian regulations with European Union standards and introduces registration requirements for GMOs.
It also bans the cultivation and circulation of certain GMO crops. The law ensures proper labeling of products containing GMOs, giving consumers the right to choose. The Ministry of Agrarian Policy will establish a State Register of GMOs. The law aims to enhance regulation, transparency, and business practices related to GMOs in Ukraine. It will take effect three years after its publication.
“Giving up GMOs in case of the country’s accession to the EU, for example. The second factor is the public opinion component — it is necessary to raise people’s awareness in this matter. And the third is the business component, as Bayer has a large seed production hub in Ukraine, producing seeds both for the domestic market and for export. Therefore, it is essential for the company to find a balance, to understand in which direction the country will develop — GMO or non-GMO,” Director for Corporate Affairs at Bayer Vitaliy Fedchuk explained.
Who owns the farmland in Ukraine?
In Walking on the West Side: the World Bank and the IMF in the Ukraine Conflict, a report released in
-The Oakland Institute
July 2014, the Oakland Institute exposed how international financial institutions swooped in on the
heels of the political upheaval in Ukraine to deregulate and throw open the nation’s vast agricultural
sector to foreign corporations.
This fact sheet provides details on the transnational agribusinesses that are increasingly investing in
Ukraine, including Monsanto, Cargill, and DuPont, and how corporations are taking over all aspects of
Ukraine’s agricultural system. This includes circumventing land moratoriums, investing in seed and input
production facilities, and acquiring commodity production, processing, and transportation facilities.
Farmers in Ukraine are shifting their focus from cultivating grain to growing oil-producing plants like sunflower and rapeseed. This change is due to the high production costs and difficulties in exporting grain. Fuel and fertilizer prices have also increased, making grain cultivation less profitable.
Who owns the farmland in Ukraine?
Additionally, the low selling price of grain, coupled with the large supply in Ukraine, has further reduced farmers’ resources and their confidence in the future. On the other hand, there is enough capacity in Ukraine to process sunflower seeds into oil for export, which is a more lucrative option.
The government has even signed an agreement with Poland to build a pipeline for transporting Ukrainian vegetable oil to Gdansk, with plans to export up to 2 million tons annually. This move not only addresses the challenges posed by the war but also taps into Ukraine’s position as a global leader in vegetable oil exports.
GMO corn cultivation and circulation are permanently banned. GMO sugar beets and rapeseed will be banned within 5 years from the date the Law takes effect.
Since Ukraine provides half of the worlds supply of corn oil, vegetable oil, and rape seed, the world market and especially the EU market will be full of Ukrainian GMO corn, oils, beets, and other farm products for the next eight years even in GMO free zones.
The good news is this completes Ukraine’s compliance for toxin and GMO free agricultural products worldwide.
