Prices of Portugal’s meat and eggs could rise if the crisis in the Ukraine continues. The reason, explains jornal i, is that Ukraine is our “main supplier” of corn – and while exports have remained stable, their logistics are becoming more complicated. Complications, in this instance, translate into higher costs. And if costs to importers are higher, the knock-on effect will mean a rise in prices.
Paulo Costa e Sousa, talking to jornal i and a broker with Louis Dreyfus Commodities, said: “If the crisis gets worse and there’s a conflict, obviously the situation for Portugal will become dramatic.”
For now, however, exports are at an “absolute record”, he said, with Portugal importing as much as 85% of its corn from the Ukraine.
“For the corn to get to ports it has to leave the centre of Ukraine,” he said. “That involves considerable distances and logistics,” estimating that if things get worse, Portugal may face price increases of as much as 15%.
Questioned on whether we could become self-sufficient in terms of corn production, Sousa said it would mean farmers tripling crop yields, which would be “difficult”. “We import a million-and-a-half tons of corn and produce, in good years, only 400,000 tons,” he said.
