FEFAC alerts EU Farm Council President on the impact of global grain market rally calling for action on trade de-escalation with the US to remove tariffs
On Friday 21 January 2021, FEFAC President Asbjørn Børsting wrote to the EU Farm Council President, Maria do Ceu Antunes (INST 2), inviting her to consider urgent action at the upcoming EU Farm Council meeting on 25 January 2021, in order to relieve market pressure on feed grain, linked to the current global grain market rally, with SBM quotations peaking at 500 USD/T, the first time since July 2010.
He points to the currently restricted market outlets for animal products due to the closure of the food service sector and export market (ASF/AI outbreaks) which leaves feed and livestock producers facing a “perfect storm”, leading to rapid deterioration of profitability and cash-flow positions affecting mostly the EU pig and poultry sector at this stage. He calls on the EU Council to take urgent action towards the new US administration to de-escalate current trade tension, which would allow the EU to remove current import duties on maize, beet pulp and molasses. He also invites the EU Farm Council to take new initiatives at the level of the G-20 platform of Agricultural Ministers calling on governments to resist “grain sovereignty” measures restricting the functioning of the global grain markets which will ultimately undermine food security during the COVID-19 crisis.