It may seem that the rulers in the EU were surprised by the long-term and large-scale mobilizations of the European farmers, but in fact the ground was ready. All that was needed was a spark to ignite the fire and spread rapidly from East to West and from North to South Europe.
Accumulated debts that are impossible to repay, the permanent strangulation by the strongest links in the market chain – mainly the big retail chains – an unbearable increase in the cost of production and at the same time extreme weather events that are becoming more frequent and cheap imports from third countries have created a mountain of problems for farmers. And while all this is happening, the centrally planned system of subsidies and support favors big farmers, as Politico writes.
The war in Ukraine has made matters worse. The rise in prices for crops such as wheat proved short-lived. And Russia’s tactics have disrupted trade flows, causing a supply glut. Polish farmers were the first to take to the streets and block border crossings, as early as spring 2023. But the protests have spread. Countries with a large agricultural population and significant production such as Germany, France, Italy, Spain, Romania and of course Greece join the dance.
The tractors on the roads
From a two-hour protest action across Poland to a multi-day “siege” of Paris, farmers have been protesting across Europe since the beginning of time.
A large portion complain about an excessive framework of EU regulations and bureaucracy that raise barriers to access, high costs and falling incomes. But the prioritization of problems differs from country to country.
This map shows the farmers’ blocs across Europe
Germans are reacting to cuts in agricultural oil subsidies decided by the government. In France they protest about free trade agreements and environmental rules in Greece about high production costs and the CAP.
However, the common denominator is the unsustainable cost of energy and inputs, combined with the collapse of the real prices farmers receive for their produce in most countries.
According to data cited by Politico, in 11 EU countries, prices of agricultural products when loaded from the field fell by more than 10% from 2022 to 2023. Greece and Cyprus are excluded, which show an increase in agricultural income. , a fact which is largely attributed to the increase in the price of olive oil.
Farmers under pressure
The prices farmers get for their farm produce peaked in 2022, but have been steadily declining since then.
They fell almost 9% between the third quarter of 2022 and the same period in 2023, according to Eurostat data.
The graph above shows the evolution of agricultural product prices and input costs:
However, product prices vary from one end of the EU to the other.
Percentage change in agricultural product prices in the third quarter of 2023, compared to 2022
Eurostat’s agricultural product price index shows that the average price of products such as cereals and milk fell during 2023, while prices for olive oil and potatoes rose.
Agricultural production price index with base year 2015
Source: ot.gr