The countries of the European Union are also taking stock of their gasoline and diesel reserves for freight traffic and the availability of kerosene for aviation. Some EU governments are already preparing contingency plans to limit energy consumption by households and possible rationing.
The Agriculture Ministers of the 27 EU countries are discussing the economic consequences of the American/Israeli war against Iran and Lebanon at their monthly meeting in Brussels. Due to the blockade, not only are raw material prices rising, but also those of chemicals and pesticides (fertilizers) that European agriculture still heavily depends on.
Food Prices
International concerns over food prices and agriculture are increasing. Multiple signals point to production pressures, rising costs, and vulnerable markets, with potential consequences for consumers and farmers worldwide. The situation can quickly worsen especially in countries with lower incomes, where there is less financial capacity to absorb rising prices.
Promotion
Vulnerable groups are the hardest hit, warns the International Monetary Fund among others. Higher costs for food and production can lead to shortages or reduced access to basic goods. This exacerbates inequality between countries and population groups.
Rationing?
Governments and institutions are under pressure to intervene. There is a broad call to take measures that support food production and stabilize markets. Without intervention, problems could accumulate further, reported the UN Food and Agriculture Organization (FAO) last week.
The supply of agricultural products and raw materials is under strain. Disruptions in transport and trade cause uncertainty and price increases. This affects not only farmers but the entire food chain.
Energy and fuel costs also play an important role. Higher prices make transport and production more expensive. This impacts food prices for consumers.
Disaster Funds
Furthermore, farmers are facing more expensive fertilizers and other raw materials and inputs. This may lead farmers to produce less or adjust their plans, further pressuring food availability. The European umbrella organization of agricultural groups argues that the EU Agriculture Ministers should open the EU compensation schemes and disaster funds.
Drought and Heat
The production of crops and animal products is showing signs of decline in multiple areas. This results from a combination of higher costs, market uncertainty, and difficult conditions for farmers.
At the same time, weather conditions also play a role. Extreme heat, drought, and other risks intensify the pressure on the agricultural sector. Together, these factors create a situation described by those involved as exceptional.