World Grain - November 2022 - 18

COUNTRY FOCUS
down in response to dry and warm conditions during the latest
stages of plant development, depleting soil moisture, " adding
that " While in the west counties May and June rainfall helped
kernel filling, yields are expected to be considerably lower
in Romania's eastern grain growing counties due to lack of
moisture. "
The same report commented on the effect of events on prices.
" Industry sources relate the relatively lower grain prices in
eastern EU Member States (namely Poland and Romania) to
the influx of grain from Ukraine, which remains in the region
until it can be exported to countries in need, " it said.
Ukraine impact
Romania's position on the Black Sea means that its role in
international grain trade has increased dramatically with the
Russian attack on Ukraine. The Feb. 24 invasion and subsequent
blockade by Russia of Ukraine's Black Sea ports triggered
a switch by Ukraine's grain exports to Romanian ports,
particularly Constanţa.
Despite a UN-brokered deal under which Ukrainian grain
shipments get safe passage through the Black Sea, designed to
ensure supplies to the world market, Ukraine continues to export
via Romania. The news agency Reuters reported on Sept.
28 that " Ukraine continues to ship grain across the Danube to
the Romanian Black Sea port of Constanţa even after some
of its own ports reopened, and the new routes are likely to
remain, " citing as source the deputy chief executive of freight
logistics group TTS, Ion Stanciu.
The European Union has been working to facilitate grain
exports by land from Ukraine through a system of " solidarity
lanes " with some success, while it was reported on Sept.
12 that the governments of France and Romania had signed a
deal on facilitating grain exports from Ukraine by land.
The new service Ukrinform quoted French Transport
Minister Clément Beaune as saying on Twitter that " I and
my Romanian colleague Ionel Scriosteanu have signed
an agreement that facilitates the Ukrainian grain exports
through providing our logistical expertise. "
On Sept. 9, the European Commission approved a €4 billion
(approximately 19.7 billion lei) scheme proposed by the
Romanian government in response to the Russian invasion of
Ukraine. The money will be distributed across sectors, in the
form of loan guarantees and direct grants. In agriculture, the direct
grants can be up to a maximum of €62,000 per beneficiary.
Milling sector
According to the European Flour Millers, there are 120 mills
processing more than 2,000 tonnes (wheat equivalent) a year
out of 300, although it also noted the existence of 800 other
mills, dealing direct with farmers. The largest flour mills are
in Constanţa and Bacău, with capacity over 800 tonnes a day.
Important players include Boromir, 7 Spice, Pambac, Dobrogea,
Sam Mills, Goodmills, Mp Baneasa, Agrochirnogi, Oltina
and Farisan.
Total flour production is 1.1 million tonnes of common
wheat flour and 5,000 tonnes of rye flour. Capacity utilization
is put at 45%. The industry uses 1.6 million tonnes of common
wheat and 6,000 tonnes of rye.
About 90% of the wheat used by flour millers is domestically
produced, with the rest coming from Hungary, Bulgaria
and Ukraine. Bread consumption is put at 85 kilograms per
person, per year.
Biofuels and biotech
Romania made changes to its biofuels rules to accommodate
producers struggling because of the pandemic but has not yet
changed anything in response to the war in Ukraine.
The attaché reported on April 30, 2020, that the Romanian
government had approved exemptions to biofuel mandates in response
to the COVID-19 pandemic. A July 5, 2022, report coverAmeropa
opened its new Chimpex terminal in Constanta,
Romania, in 2017. The terminal has 500,000 tonnes of grain
storage capacity.
18
November 2022 / World Grain / World-Grain.com
Photo courtesy of Ameropa
http://www.World-Grain.com
World Grain - November 2022

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