Agriculture
Market situation in the context of the Russian invasion of Ukraine
The Russian invasion of Ukraine significantly disturbed global agricultural markets. The subsequent uncertainty was further deepened by the energy crisis driven by the disruption of gas supplies from Russia. The prices of key agricultural products and inputs increased significantly. Despite the partial unblocking of Ukrainian ports, positive outcomes of solidarity lanes and a consequent relative decline in general cereal prices over the summer, agriculture ministers voiced their concern about the high degree of unpredictability regarding the volumes of possible future agricultural exports from Ukraine, as well as storage capabilities.
Ministers furthermore stressed that EU farmers continue to face many challenges, including the rising prices on energy and fertilisers, adverse weather conditions, food price inflation and the impact of imports from Ukraine on their markets.
Ministers especially highlighted the significant issue of affordable fertilisers provisions in the agricultural sector, which is affecting both farmers and fertilisers producers, and is leading to a decline in productivity.
The Russian aggression in Ukraine led to decrease of supply in fertilisers causing prices driving up. This affects all European farmers and could possibly jeopardise future harvest, not only in Europe. That's why we agreed further measures are necessary to ensure that fertilisers as well as final agricultural and food products remain affordable.
Zdeněk Nekula, Czech minister of agriculture
As a result, ministers called for further EU measures, including the extension of state aid and the need for a higher ceiling. Ministers additionally welcomed the Commission's announcement that it would publish a communication on fertilisers.
Trade-related agricultural issues
In light of the Russian war against Ukraine, agriculture ministers had an exchange of views on the impact of the war on the EU's trade in agricultural products and inputs, and its impact on food security. Agriculture ministers moreover exchanged views with regards to ongoing trade negotiations with third countries, including Mercosur and Australia. In this respect, ministers emphasized the need to continue to promote free trade and sustainable agriculture in the EU and globally, as well as to safeguard the competitiveness of the EU's agricultural sector and its producers. Ministers moreover stressed the need for the Commission to investigate the impact of free trade agreements between third countries on the EU.
Other business
Ministers discussed the importance of close cooperation between member states when preparing the EU framework for forest monitoring and strategic plans. They were additionally informed about the joint declaration on EU carbon farming initiatives signed by the ministers of agriculture of the Visegrad Group countries, as well as Bulgaria, Croatia, Romania and Slovenia. Ministers furthermore argued for the need for an EU-wide end to the systematic killing of male chicks, as well as the importance of tackling co-financing constraints of phytosanitary and veterinary programmes. They also discussed the possibility of using RENURE (recovered nitrogen from manure) products, as an alternative to chemical fertilizers, as well as the issue of organic protein feed from Ukraine.
