MKM about AGRO&FOOD SECURITY FORUM 2022

News

Just a week ago, MK Merchants SA was not only a Gold Trade Sponsor of Agro&Food Security Forum in Warsaw – we were a part of important networking platform where government, ports authorities, farmers, top management of trading and logistics companies have met to discuss important market issues around the situation with Ukrainian cereals. 

Together with other panelists and speakers, we tried to find out new logistics solutions and ways of cooperation. As we announced before, our Cezary Maciborski took part in the hottest and most lively panel discussion, which was left by on the end of main program. During this panel, organizers gathered representatives of the main players of AGRO Business sector and gave the floor to each panelist.

Several notes about discussion from Cezary:

«In my opinion, the Ukrainian problem is more complex than all speak about. Russia has started a war with Ukraine on multiple levels, understanding that agriculture in Ukraine is her bloodline. They act in three main levels to destroy Ukrainian economy: the simple farmers –now it is very difficult to find a farmer with fully intact equipment and a complete bank of fields, secondly – blockading ports to destroy big holdings cutting them off from their traditional export markets, and thirdly, they go after and kill well known individuals like Mr. Vadaturskyi. So, if we realize all this, we understand that it is a targeted war against Ukrainian economic.

 On the other side the main problem in trading from Ukraine is clearly logistics. All niche products should be transported in containers, if we are not talking about small quantities that can be transport by track business. Ukraine has no access to containers – it is totally cut off container business. Different companies, different players are trying different methods of to solve the problem. Someone tries to go through Romania, trying to fight for containers or boxes with Romanian companies. The other version is going through transshipment in Turkey, which has its own freight problem. Some are trying to speak about Baltic ports, but look at the map – we understand how long and expensive the subsequent voyages would be.

 To summarize, I have to stress again – Agriculture is very important for Ukraine. We absolutely understand that the year 2022 is the result of 2021. I think that the problem will be in 2023, when it will turn out that Ukrainian farmers have not been able to sow as they did in previous years.  So if Europe and the West want to help they are obliged to help the midsized and small farmers in central Ukraine in order to avoid a humanitarian crisis and mass migration that would start for sure if Agriculture in Ukraine is “killed”. Also, lots of problems can be solved only on government level, for example, the problem of certifications or the issue of simplification of documentation at the borders. So now, we should concentrate on these problems but not on long-term plans for the construction of new railways or etc. Solutions and decisions should be quick and efficient. This is what I think.”