Call on EU to take action on rising farm input costs
As the conflict in the Middle East continues to impact on the cost of farm inputs, the European Union is being urged to take "immediate action".
Farm Europe, the think tank focused on European agriculture and rural economies, said the the EU "still appears trapped in a phase of analysis and discussion that risks being not only insufficient, but harmful".
The call has been echoed by Eat Europe, an organisation which is aimed at driving a sustainable and resilient food systems' transformation.
Energy and fertiliser prices have soared due to the near closure of the Strait of Hormuz, a crucial global shipping lane for oil, fertiliser and liquefied natural gas (LNG) located between Iran and Oman.
Estimates from the European Commission suggest the Middle East accounts for 9% of global production capacity of urea and 35% of global exports.
Farm input costs
The European Food Security Crisis Preparedness and Response Mechanism (EFSCM) met on Thursday (March 26) to assess developments in the Middle East and their potential impact on the EU agricultural and food sector.
However, Farm Europe and Eat Europe said the latest meetings "seem to be yielding little progress".
“At a time when agricultural businesses and the entire agri-food supply chain are facing rising costs and increasing uncertainty, continuing to postpone operational decisions means worsening the situation
"This is no longer the time for assessments. The crisis is already here," Luigi Scordamaglia, president of Eat Europe, said.
Yves Madre, president of Farm Europe, also called on the EU to take action.
"The European Union must change its approach: not merely observe and analyse, but act with speed, vision, and appropriate tools. Immediate and structural measures are needed," he said.
Action
Madre added that it is "essential to activate contingency measures right away to support agricultural and agri-food businesses affected by rising costs and market tensions".
He said that fertiliser should be excluded from the EU's Carbon Border Adjustment Mechanism (CBAM).
The CBAM is effectively a tax on imports of carbon-intensive products into the EU. This includes fertiliser.
He also called for a dedicated decarbonisation strategy for farmers and the fertiliser industry.
Farm Europe and Eat Europe said that a more resilient European system must be built, which is capable of preventing and managing crises without amplifying their effects.
The groups have already proposed actions on strategic food storage to strengthen European food security.
"No more delays: inertia has a cost. Continuing to postpone operational decisions while waiting for further data or analysis means leaving businesses and citizens exposed to a rapidly evolving crisis.
"Institutional inertia risks turning a manageable crisis into a structural one," Scordamaglia said.
