On Thursday 20 November, the European Parliament’s Committee on Agriculture expressed its concern about the situation of the cereal market and industry professionals in the European Union.
The situation in the European cereal market is “mixed”, the European Commission representative told MEPs. EU cereal production is expected to be 7.3% higher this year than last.
Regarding imports, those of cereals - particularly from Ukraine - have fallen since the expiry of duty-free and quota-free access and the autonomous trade measures granted to Ukraine. As the Commission pointed out, these measures came to an end in June. Imports have therefore returned to historical levels.
The economic situation for cereal producers remains difficult, according to the Commission. Firstly, because cereal prices are relatively low (abundant global supply, limited international demand). Added to this are production costs that remain high, in particular for fertilisers. Compared with 2024, nitrogen fertiliser prices are now 15% higher, phosphate prices 16% higher and potash prices 3% higher.
Secondly, EU farmers are increasingly affected by adverse climate events. And while support by means of the agricultural reserve remains an option, “without a clear risk management strategy at Member State level, this is only a temporary solution. The agricultural reserve is limited, and extreme weather events are not the only challenges likely to disrupt agricultural markets”, explained the Commission.
It also highlighted the lack of organisation among cereal producers: “They don’t create enough producer organisations”.
Finally, based on preliminary indications some farmers are currently increasing their share of set-aside land, as cultivation is becoming less attractive. “If these trends continue, this could jeopardise the EU’s position as a major global exporter of wheat and barley and further increase dependence on maize imports”, warned the Commission.
Stefan Köhler (EPP, German) expressed his disappointment at the lack of measures announced by the Commission to help EU cereal growers. According to Gilles Pennelle (PfE, French), massive cereal imports from Ukraine have unbalanced the market. He called for a moratorium on the trade agreement with Ukraine (as well as the rejection of the EU-Mercosur agreement), an increase in intervention thresholds and investment in storage capacity.
Maria Walsh (EPP, Irish) recalled the concerns in her country about the entry into force of the ‘Carbon Border Adjustment Mechanism’ (CBAM) in early 2026. This new European instrument aims to combat carbon leakage. Ms Walsh spoke of the potential impact of this measure on fertiliser prices (which are expected to rise). Imported fertilisers (particularly nitrogen fertilisers), often produced in countries where energy is cheaper and CO2 emission standards are lower, will carry an additional carbon cost. This automatically increases the import price. (Original version in French by Lionel Changeur)