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Image header Agence Europe
Europe Daily Bulletin No. 12929
Contents Publication in full By article 13 / 31
SECTORAL POLICIES / Agriculture

Rising farm input costs continue to worry EU ministers

The EU Agriculture Ministers expressed their concerns on Thursday 7 April in Luxembourg regarding the increase in input prices (fuel, fertiliser, energy prices, animal feed) caused by the Russian-led war in Ukraine.

The Ministers also pledged to support Ukrainian agriculture in every way possible. The Agriculture Council heard a presentation by the Ukrainian Minister of Agriculture, Mykola Solsky, who made specific requests for support for the agricultural production system.

The European Commission presented the responses to the Ukrainian requests both in terms of food aid and agricultural production aid.

Julien Denormandie, the French minister chairing the Agriculture Council, said that Ukraine is doing everything to maintain agricultural production. “50-70% of Ukraine’s land can be sown”, he says. Ukraine has made requests (fuel, seeds, post-harvest storage capacity, logistics, etc.) and the Commission will manage the compilation of inputs that Member States could grant.

France sent, for example, potato seeds. Ukraine also has demand for agricultural equipment (machinery) and for storage of future production.

Mykola Solsky called on the EU, including European companies, to stop all forms of collaboration with Russia. He confirmed that Ukrainian farmers were planting wherever they could, but that the harvest could be 30-50% below normal. He called for the simplification of administrative requirements for exports from Ukraine.

Rising input and feed costs. Input costs are rising, admitted Janusz Wojciechowski, the Commissioner for Agriculture. On fertilisers, he encouraged Member States to use their Common Agricultural Policy (CAP) strategic plans to reduce reliance on chemical inputs.

Several EU countries have also requested temporary derogations (suspensions) on import taxes on fertilisers, to ensure adequate supplies. “The Commissioner will examine this issue”, said Minister Denormandie.

The Commission also referred to rising food prices. World food prices reached their “highest levels ever”, in March due to the war in Ukraine, the Food and Agriculture Organization of the United Nations (FAO) said on Friday.

Other requests. Julien Denormandie indicated that, with regard to derogations for the use of set-aside land, the Commission will assess the situation for 2023 (to possibly extend the derogations for another year). EU sunflower production will increase, partly due to the use of set-aside land, the Commission said.

The Commission will also consider the request of several countries to use second pillar (rural development) funds to support farmers (see EUROPE 12928/3).

Several countries mentioned difficulties in certain sectors: apples (Poland), fruit and vegetables (Greece, Spain, Belgium), milk (Slovenia), pig meat (Poland in particular) and sugar (Bulgaria).

The issue of “food system resilience” was also discussed. There is a consensus on the need to reconcile (agricultural) production and (environmental transition) protection, summarised Mr Denormandie. (Original version in French by Lionel Changeur)

Contents

Russian invasion of Ukraine
EXTERNAL ACTION
SECTORAL POLICIES
EUROPEAN PARLIAMENT PLENARY
EU RESPONSE TO COVID-19
COUNCIL OF EUROPE
NEWS BRIEFS