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Farmers in Ukraine continue where possible

28 February 2022 - Niels van der Boom

In the midst of the conflict, agricultural entrepreneurs in Ukraine are trying to keep their businesses running. It is especially important to deliver food to civilians and military in their country. Dutch entrepreneurs in the country meanwhile are trying to get relief supplies across the border through colleagues.

In recent months, arable farmer and dairy farmer Kees Huizinga has been forced to become a Ukraine expert. He is regularly in the media and told also on Boerenbusiness on the situation at the end of January. Huizinga's 16.000 hectare company is located in the Central Ukrainian region of Cherkasy. 600 kilometers from the border. Yet it is also restless there. In rural areas it is 'business as usual' as far as possible. The milk, potatoes, onions, carrots and meat that are produced go to the population.

Factories locked
This also applies to the large agricultural holding company Continental Farmers Group. This company works 195.000 hectares in the west of the country. Dutchman Willem Nammensma is responsible for the potato cultivation, over 2.000 hectares. "The chip factories are closed and the potatoes are coming back to the company," he wrote on Facebook. Being a driver in Ukraine requires nerves of steel and a lot of transport is therefore at a standstill. Nevertheless, work on the companies continues as usual, as far as possible. At Nammensma, fertilizer is sprinkled on the rapeseed. After all, there must also be a harvest next summer. The sale of products has come to a standstill. Customers are hesitant, transport is a problem and factories are shut down.

This also applies to Huizinga's company, where the 2.000 cows have to be milked daily and the pigs are fed. In the meantime, the men try to keep their Dutch supporters informed via social media. The power supply and obtaining fuel are a major problem. Huizinga is trying to obtain aggregates and diesel via Poland and the Netherlands.

Relief actions
In a day's time this grew into a major relief campaign with all kinds of goods. From clothing to night vision goggles and from cans of canned food to diapers. Goods can be delivered yesterday and also today – Monday. These are transported across the border via Romania. At least that is the hope, because it is chaos at the borders. Poland is no longer an option, so there is an alternative.

In the meantime, Huizinga and his employees are trying to do what they can. In an emotional speech on Facebook, he calls on everyone to help. The company not only provides free food to refugees and military personnel, but also machines to erect roadblocks on major roads. Nammensma shares images of road signs being removed along roads to disorient the occupiers.

Cereal price higher again
Now that Russia has to deal with increasingly severe sanctions, the (economic) consequences are enormous. The value of the ruble fell by 30%. The grain market is also affected by this. The US grain exchange CBOT is already trading more than 50% higher in the nighttime US hours. The Matif opened €12,50 higher Monday morning and then rose to €313,75 per tonne for the March contract.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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