September 9, MINSK. Farmers and food producers in Europe are warning that there could be seasonal shortages of a wide range of everyday foods in the winter. In addition, the prices of these goods will rise significantly. This is stated in an article in the British newspaper Financial Times, the translation of which is published by InoSMI.
Union Copa-Cogeca, which represents the interests of farmers in the European Union, as well as two large associations of food producers FoodDrink Europe and PFP reported that the owners of farms have already begun to reduce the volume of production. One of the reasons for this situation is the increase in energy costs.“The next increase in energy prices, especially natural gas and electricity, threatens the continuity of agri-food production cycles and therefore the ability to continue to supply basic agricultural commodities, food and feed materials,” the industry representatives, with whom they spoke ahead of an emergency meeting of EU energy ministers in Brussels.
Electricity prices in Europe have skyrocketed this year on the back of reduced supplies of Russian natural gas. Many producers fear that in the winter, when demand for electricity rises, European governments will resort to electricity rationing schemes. For the food industry, this will be a huge blow.
Copa-Cogeca general secretary Pekka Pesonen said European buyers will face even higher prices this winter and a shortage of many fruits and vegetables. "We've never seen anything like this before," he said. "Nobody expected it to happen and have such massive consequences."
When it comes to food, electricity is needed at all stages - from the production of fertilizers to harvesting and freezing products. According to Pesonen, the dairy and bakery industries have been hit particularly hard by the rise in prices because pasteurization and MILK powder production are very energy-intensive processes.
From the beginning of the year to July, European Union butter prices rose by 80%, with milk powder up by more than 50% and beef by 28%, according to European Commission data . But farmers say their production costs are rising even faster. .
Many fruit and vegetable growers are already cutting plantings for next season, and some report that the rising cost of operating greenhouses is already outpacing the profit they can make.
Nordic Greens, Sweden's largest tomato grower, said it would not plant winter crops because it could not afford the high electricity costs.
Greenhouses in the Netherlands, the world's second largest agricultural exporter after the United States, are also being phased out. "Probably no one will be growing tomatoes and cucumbers in greenhouses this winter because it's not financially viable," said Alexander Formsma, energy specialist at Dutch company Glastuinbouw Nederland.
Heated greenhouse crops such as cucumbers and peppers will be half as good in the UK in 2022 due to high electricity prices.
Lee Stiles, secretary of the Lea Valley Growers Association in Hertfordshire, said growers who used to harvest until October or even November are stopping harvesting now this year, with next year's plantings subject to price negotiations with supermarkets. Those crops that have already grown will rise sharply in price. "Now a cucumber costs £1. It used to cost 60p," Stiles said.
Those growers who grow their produce outdoors are planning to reduce their plantings because they can no longer afford to freeze produce to extend its shelf life. Belgian APPLE growers, for example, will have their working season significantly reduced if they are unable to preserve the fruit.
“Now we will feel the seasonality of certain products much more sharply, because some of them will become very expensive, while others will simply disappear from the shelves,” Pesonen said.
At an emergency meeting, EU energy ministers will discuss a proposal for member states to begin levying windfall taxes on gas-powered electricity companies as well as fossil fuel producers. However, the funds raised are likely to be used to help pay bills to households, not businesses.