Why Farmers Are Protesting In Europe

Tue, 20 Feb 2024 21:08:22 GMT

Farmers are protesting across the European Union, saying they are facing rising costs and taxes, red tape, excessive environmental rules and competition from cheap food imports. Demonstrations have been taking place for weeks in countries including France, Germany, Belgium, the Netherlands, Poland, Spain, Italy and Greece.

While many issues are country-specific, others are Europe-wide. Here is a detailed look at the problems that have prompted the protest movement across the bloc and in individual countries.

IMPORTS

Demonstrations in eastern Europe have focused on what farmers say is unfair competition from large amounts of imports from Ukraine, for which the EU has waived quotas and duties since Russia’s invasion. Polish farmers have been blocking traffic at the border with Ukraine, which Kyiv says is affecting its defense capability and helping Russia’s aims. Meanwhile, Czech farmers have driven their tractors into downtown Prague, disrupting traffic outside the farm ministry.

The farmers resent the imports because they say they put pressure on European prices while not meeting environmental standards imposed on EU farmers. Renewed negotiations to conclude a trade deal between the EU and South American bloc Mercosur have also fanned discontent about unfair competition in sugar, grain and meat.

RULES AND BUREAUCRACY

Farmers take issue with excessive regulation, mainly at EU level. Centre stage are new EU subsidy rules, such as a requirement to leave 4% of farmland fallow, which means not using it for a period of time.

They also denounce bureaucracy, which French farmers say their government compounds by over-complicating implementation.

In Spain, farmers have complained of “suffocating bureaucracy” drawn up in Brussels that erodes the profitability of crops.

In Greece, farmers demand higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods.

RISING DIESEL FUEL COSTS

In Germany and France, the EU’s biggest agricultural producers, farmers have railed against plans to end subsidies or tax breaks on agricultural diesel. Greek farmers want a tax on diesel to be reduced.

In Romania, protests in mid-January were mainly against the high cost of diesel.

In France, many producers say a government drive to bring down food inflation has left them unable to cover high costs for energy, fertilizer and transport.

WHAT ARE GOVERNMENTS DOING?

The European Commission late last month proposed to limit agricultural imports from Ukraine by introducing an “emergency brake” for the most sensitive products - poultry, eggs and sugar - but producers say the volume would still be too high. The Commission has also exempted EU farmers for 2024 from the requirement to keep some of their land fallow while still receiving EU farm support payments, but they would need to instead grow crops without applying pesticides.

French Prime Minister Gabriel Attal announced measures including controls to insure imported foods do not have traces of pesticides banned in France or the EU, and talks to get farmers higher prices and loosen bureaucracy and regulation.

Paris and Berlin have both relented to the pressure and rowed back on plans to end subsidies or tax breaks on agricultural diesel. In Romania, the government has acted to increase diesel subsidies, address insurance rates and expedite subsidy payments.

In Portugal, the caretaker government has announced an emergency aid package worth 500 million euros, including 200 million euros to mitigate the impact of a long-running drought.

WHY FARMERS ARE PROTESTING, BY COUNTRY:

FRANCE

- EU red tape

- Diesel prices

- Need more support to shore up incomes

- Access to irrigation

- Criticism over animal welfare and use of pesticides

POLAND

- Cheap imports from Ukraine

- EU regulation

CZECH REPUBLIC

- Bureaucracy

- Cheap imports

- EU farm policy

SPAIN

- “Suffocating bureaucracy” drawn up in Brussels that they say erodes the profitability of crops

- Trade deals that they say open the door to cheap imports

PORTUGAL

- Insufficient state aid, subsidy cuts

- Red tape

ROMANIA

- Cost of diesel

- Insurance rates

- EU environmental regulations

- Cheap imports from Ukraine

BELGIUM

- EU requirement to leave 4% of land fallow

- Cheap imports

- Subsidies favoring larger farms

GREECE

- Demands for higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods

- Diesel tax and surging electricity bills

- Falling state and EU subsidies

(Reporting by Sybille de La Hamaide and Gus Trompiz; Editing by Crystal Chesters)

Milk Production in Europe Continues to Fall: Here are Two Big Reasons Why

Sun, 04 Feb 2024 22:08:16 GMT

The ongoing implementation of environmental regulations, called the European Green Deal, and low agricultural commodity prices have sparked numerous farmer protests across Europe. Dairy has not been immune as new regulations weigh on milk production. November EU milk collections fell to levels not seen in years, according to Betty Berning, analyst with the Daily Dairy Report.

Approved in 2020, the European Green Deal is a set of policy initiatives designed to help the trading blocreduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The initiatives extend to many different sectors of the economy, including construction, biodiversity, energy, transportation, and food and agriculture.

“The protests occurring across the continent underscore farmers’ frustration with low revenues and increased restrictions,” Berning said. “While governments seem to be listening, it’s unclear whether meaningful action will be taken. Moreover, with environmental limits already in place in Ireland and the Netherlands, change could come too late to cause a significant shift in the trajectory of the EU dairy sector.”

November milk production in the European Union and the United Kingdom fell 2.5%, compared to a year earlier, to 26.6 billion pounds, based on preliminary data and estimates from Eurostat, CLAL, and the UK’s Agriculture and Horticulture Development Board (AHDB). November milk production was the lowest for any November since 2018 and the fourth month in a row that volumes declined on a year-over-year basis. Ireland’s November milk collections plunged 20%, or 218.3 million pounds, to 882.4 million pounds vs. November 2022, as the country headed into its seasonal low.

“Ongoing environmental restrictions have been pushing production lower across Europe, and November’s production loss highlights the continent’s ongoing reduction in milk flows,” Berning said.

Through November 2023, annual year-over-year milk production was up a marginal 0.1%, with losses beginning in August. According to USDA’s October estimates, Europe’s trend toward declining output will continue into this year, with 2024 milk volumes forecast to drop 0.14% from 2023 levels to 320 billion pounds.

“German farmers took to the streets of Berlin in late January to protest rising taxes and a lack of subsidies,” Berning noted. “The demonstrations were part of ongoing farmer protests as Germany rolls out austerity measures to cover holes in its budget.”

Reuters and other news outlets reported that similar demonstrations have been occurring in other countries since late last year. Farmers in France, for example, have blocked roads around Paris as they call for “urgent action on low farmgate prices, green regulation, and free-trade policies,” according to Reuters.

Some headway could be occurring in France, where Prime Minister Gabriel Attal said he will not reduce tax breaks for diesel fuel destined for agricultural use, one of the farmers’ chief grievances. He also said the government will distribute emergency funds more quickly and levy substantial fines on corporations that do not follow price negotiation rules.

“Farmers in Poland have voiced concerns over agricultural imports from Ukraine as well as over the European Green Deal,” Berning said. “Agricultural products from Ukraine have reportedly been flooding Poland’s market as demand remains low in the war-torn nation, causing Polish farm revenue to drop.”

Poland