On Monday May 27, Armands Krauze, the Minister for Agriculture, in Brussels, at the meeting of the EU Council of Ministers for Agriculture and Fishery, where Ministers of Member States discussed how in future to react quickly and effectively to evercome crisis in agriculture and food industry, caused by exterior factors, emphasized: it is necessary to work more active at the EU level, rather forecasting occurence of different crisis and avoiding them than eliminating consequences as was the former practice.
Armands Krauze, the Minister for Agriculture: “For crisis management in agriculture and food industry, a proactive and structured approach is needed at the EU level with clear finance granting criteria, policy coordination and flexible management of funding to ensure a timely support for relief of crisis consequences and prevention. Solving crisis and problems, caused by urgent situations in agriculture and food industry must not be left solely at the discretion of Member States.” Different crisis in agriculture need an adequate EU funding to overcome them – the financing EUR 450 million annually, earmarked for the entire EU in the current EU Common Agricultural Policy is not sufficient. Besides, more effective ways must be found to utilize this financing, reacting to different market distortions as well as unfavorable weather conditions and impact of climate changes.
Just as it is necessary to strengthen ability of farmers to undertake risk factors and responsibility for consequences, improving availability of knowledge and enhancing understanding. Besides, in respect of climate risks, insurance possibility must be used more broadly, which is one of the most suitable instruments reducing losses caused by climate risks.
At the Council, Ministers also discussed the impact on the EU agricultural market of Russia’s war in Ukraine. The Minister for Agriculture is still calling for more stringent restrictions on imports of agricultural goods and food to the EU from Russia and Belarus – these goods from aggressor states must be made less attractive in the EU Member States. Therefore, Latvia has prepared a statement, supported by six Member States (Baltic States, Nordic States and Czech Republic), asking the European Commission to lay down customs tariffs for a wider assortment of goods imported from Russia and Belarus.
As the situation in agriculture is still unstable, it is necessary to introduce the EU-level measures so that EU farmers, who must comply with higher standards and thus, incur higher production costs, could retain their position on world markets. The high standards, to be met by the EU producers, must be ensured with an adequate financial support, particularly for innovations and modernization
Responding to protest campaign of the European milk producers group, which took place in Brussels on May 27, Armands Krauze, the Minister for Agriculture pointed put that the EU must find realistic and effective solutions so that farmers receive a fair income. Since Covid-19 pandemic and Russia’s invasion of Ukraine, agriculture and food production in the EU is operating in constant crisis conditions. Unfortunately, more often than not the burden is born by farmers and producers. Primary producer – farmer – must receive a fair payment, it must be achieved that the farmer and food producer are priority all over the food production chain, and not a sufferer and looser in the result of actions of food distributors and retail networks. This can be achieved by strengthening the market power of farmers and food producers, improving regulations on banning unfair trade practices.