The Agriculture Ministers of the G7 countries met on Monday 8 June to examine ways of supporting farmers in the face of the repercussions of the conflict in the Middle East and tensions on the energy and fertiliser markets, against a backdrop of disruption to global supply chains (see EUROPE 13874/4).
French Minister for Agriculture Annie Genevard brought together her counterparts from the United States, the United Kingdom, Germany, Italy, Canada, and Japan, as well as representatives of the European Union, the Organisation for Economic Co-operation and Development (OECD), the Food and Agriculture Organization of the United Nations (FAO), and the Agricultural Market Information System (AMIS).
The discussions focused on risks linked to rising agricultural input prices, in particular fertilisers and fuels for non-road uses, regarded as a strategic issue for global food security.
According to analyses by the FAO, AMIS and the OECD, a number of risks could materialise in the medium and long term, with direct effects on agricultural production costs and the economic viability of farms.
In this context, the G7 Ministers underlined the need to strengthen market transparency, diversify sources of supply, and support the resilience of agricultural value chains.
European Commissioner for Agriculture Christophe Hansen warned of the “shockwaves” caused by tensions in the Middle East on the energy and fertiliser markets, with serious consequences for users of these inputs.
He recalled that the availability and affordability of fertilisers are a strategic issue for global food security, stressing that European farmers, especially cereal growers, are facing an accumulation of difficulties.
The rise in fertiliser costs, combined with relatively low agricultural prices, is darkening the sector’s economic outlook. The European Commission continues to monitor markets and trade flows closely.
The situation remains broadly under control for the current marketing year, notably for winter crops, but could deteriorate next year for spring crops and livestock farmers.
Christophe Hansen also recalled the European Union’s dependence on imports of essential inputs such as natural gas, ammonia and phosphate, in a context where fertiliser prices had already been on an upward trend before the current crisis.
The Commission said it had suspended customs duties on certain fertilisers and in May presented an action plan aimed at responding to the sector’s immediate pressures and structural vulnerabilities, combining short-term support via the CAP with a long-term strategy to strengthen European production and diversify supplies.
Lastly, the Commissioner called for maintaining open, predictable and rules-based markets, avoiding export restrictions and strengthening transparency tools, notably through the AMIS system.
The Ministers considered that these exchanges should feed into discussions at the G7 leaders’ Summit, scheduled to take place in Évian next week. (Original version in French by Lionel Changeur)