The problem also lies in the fact that the new conditions set by the CFM eliminate the discounts for cargoes of more than 4,000 tons from the north to the southern ports of the country.
Some members of the Association of Grain Producers and Exporters Agrocereale claim that this decision has already reduced the competitiveness of Moldovan grain on the regional market of the Black Sea countries. The problem is that Moldovan traders used to conclude long-term foreign trade contracts for grain supplies of the new harvest before or at the beginning of the harvesting campaign, and the previous tariffs were taken into account.
Changing the “rules of the game” at the moment when the marketing season is gaining momentum significantly changes the calculations of market operators and, in particular, the expected profitability of the grain business. After all, an increase in logistics costs by only $10-20/t in case of export of 50 thousand tons of wheat or barley during the marketing year is converted into a decrease in trader’s income by $0.5-1.0 mln.
Undoubtedly, such “business arithmetic” will also translate into lower purchase prices for grain. As a result, farmers will lose about 200-400 lei/t.
