BayWa, one of the ten biggest agricultural traders in the world has stated that the company may rent silos in Ukraine or partner with local companies in order to secure supplies, however BayWa will not invest in assets within Ukraine considering the move “too dangerous”. Aside from the uncertainty caused by the instability in the Kremlin BayWa also notes that the currency weakness could make farmers hold back supplies. Large suppliers are paid in dollars or euros, however they in turn pay local farmers in the local currency which if it deteriorates further, the withholding of supplies would have a large impact upon markets. BayWa states that it is also leery of investing in Romania because of problems with corruption. Instead, BayWa is looking to take its first steps in Africa, possibly in Zambia or Namibia.
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