EU agri-food sounds ‘alarm bells’ over energy crisis

In a joint statement released on September 8, 2022, Copa-Cogeca, the Primary Food Processors (PFP) and FoodDrinkEurope warned that production costs have increased 'dramatically' as natural gas, electricity, fertilizers, fuel, packaging and labor expenses have ail risen.
Cost increases were initially due to a post-COVID rebound in demand and supply chain constraints, but they have been severely exacerbated by the Russian invasion of Ukraine, they warned.
 
 Combined with extreme weather events, the current situation is a perfect storm for European food producers. Droughts, storms and frosts have already caused 'major impacts' on the farming community and agri-food businesses, they said.
"More and more companies in the EU agri-food chain are struggling to maintain their operations, with some composes faced with the choice of stopping production, laying off staff or going out of business," the joint statement warned.

A call to action
Timed ahead of the Extraordinary Energy Council on Friday 9 September and European Commission President Ursula von der Leyen's annual State of the Union speech next week, the industry lobbies want the EC to take action.
The agri-food chain backed the European Commission's recent "Save Gas for a Safe Winter" Communication, which they said singles out the critical importance of Europe's agri-food supply chain and the need for a secure supply of gas to maintain food security.
However, to continue operating and to maintain a fully functioning food supply chain, the sector needs 'certainty on the access to energy and stable prices'.
Specifically, the food bodies continued, the Commission must support Member States to intervene to bring energy prices down and increase liquidity on energy markets, diversify energy supply, boost sustainable energy generation, and support the competitiveness of operators,
More EU oversight of Member State gas rationing plans is also needed, to make sure they prioritize the agri-food sector, it was insisted. In addition, a further revision of the Temporary Crisis Framework is urgent to ensure that it can be used by Member States and businesses.
"We hope Energy Ministers reflect on the impact on the agri-food sector at their meeting, and that president Von der Leyen will acknowledge the vital importance of the agri-food sector at her State of the Union address.
"As during the COVfD-19 crisis, we are committed to working with the European Institutions to provide a continuous supply of high-quality and affordable products."

Temporary suspension of tariffs on fertilizers
Earlier this year, Copa Cogeca welcomed the EU decision on temporary suspension of tariffs on fertilizers, noting that “the Commission decision goes in the right direction, but remains incomplete for the time being”.

In its statement at the end of July 2022, Copa Cogeca explains that “faced with a tense situation on the fertilizer markets, the European Commission (DG  Trade)  has  taken  a  long-awaited  decision  by  the  farming  community:  the suspension  of  conventional  tariffs  for  certain  fertilizers  (urea  and  anhydrous ammonia). Copa and Cogeca welcome a step in the right direction and call on the Commission to follow its logic to the end by also suspending conventional duties on  key fertilizers used directly by farmers  (UAN,  DAP, MAP  and  NPK)  and  antidumping  measures  on  UAN  imports  from  Trinidad  and  Tobago  and  USA.  Only such  an  ambitious  measure  could  make those  markets  more  dynamic  and  bring down the prices paid by farmers in the long term”. 

Sources: copa-cogeca.eu, foodnavigator.com