Grain deal apprehension

AS Russia suspended its grain agreement with Ukraine, Spain’s grain­based industrialists began to worry about future supplies.

“Spain is a major importer of cereal grains,” said Jose Manuel Alvarez, director of Spain’s Grains and Oilseeds Trade Association (Accoe).

“As Ukraine is one of our main sources we shall have to keep a close watch on future developments.”

Prices would inevitably rise, he said, although supplies were currently guaranteed, as the sector’s production campaign runs from July to July.

For the first six months of the year, grain comes from Latin America, principally Brazil, Alvarez explained, but during the second half it is imported from Ukraine.

“Problems could start in January next year,” Alvarez predicted.