Shutterstock

News food security

'Eye for margin pressure on farmers due to war Ukraine'

10 May 2022 - Linda van Eekeres

The government must be aware of the pressure on the margins that arise among farmers as a result of the effects of the war in Ukraine. Industry organizations indicate this in so-called position papers that they have submitted for the round table discussion that will be held tonight (May 10) in the House of Representatives, with the theme 'Global food security in times of war'. 

According to various organizations, including LTO Nederland, BO Akkerbouw and Wageningen University & Research (WUR), the Netherlands and the European Union do not have to worry about food security in the short term. The effects of the war in Ukraine hurt especially poorer countries. "Neither for the European Union nor for the Netherlands is food security at stake," says WUR. "Both the European and Dutch food systems are robust, in the sense of being able to withstand shocks. However, consumers with less purchasing power may be limited in their access to healthy food due to higher food prices, rising energy costs and other price increases."

BO Akkerbouw considers it appropriate for the European Union to consider its own food supply more of a strategic importance. In that context, according to the sector organization, the Netherlands must provide a clearer picture of its own role within the food supply of the European Union. In order to cope with the current high prices, the organization sees a great deal in making the agricultural sector fossil-free, as well as early payment of (EU) subsidies to farmers, 'so that they have sufficient financial scope to take care of their crops optimally. '.

Monitor earning power
LTO Nederland argues in favor of monitoring the earning capacity of Dutch farmers and horticulturists. "Corona and Ukraine are not the last crises. That is why agriculture and horticulture must be resilient in case the next calamity presents itself: monitor the earning capacity of Dutch farmers and horticulturists and mitigate the impact of the war in Ukraine. This can be done, for example, by chain responsibility in the event of cost increases and the reintroduction of red diesel. Provide a solid European infrastructure for food chains – companies and governments – that can react quickly if necessary."

According to the agricultural and horticultural organisation, farmers and horticulturalists in the Netherlands and the European Union must be protected by a so-called 'Strategic Importance of Agriculture and Horticulture Act'. This should safeguard the strategic importance of food and protect agricultural land 'against unbridled purchase for nature, construction and industry, but also against purchase by foreign companies and powers'.

LTO Nederland also believes that the impact on food security should be carefully examined in European sustainability plans. The organization also points out the importance of reducing the dependence on fertilizers: derogating from the Nitrates Directive and making more use of fertilizer substitutes. According to LTO Nederland, the production of vegetable protein in the European Union (for human and animal consumption) should also be stimulated.

'Do not intervene in the animal production chain'
According to Agrifirm, the government should in any case not intervene (in the short term) in the animal production chain 'on the basis of the idea that we thereby free up grains for the consumer'. "That's true, and perhaps important in the long term, but the damage deeper in the chain is enormous and will be felt and visible for years to come." According to this cooperative enterprise, what should the government do in the short term? "First of all, pay attention to dampening the price effects of consumer products."

Agrifrim believes that help should also be offered to poorer countries, where the war really hurts, but that farmers and market gardeners should not be forgotten either. "Pay close attention to the short-term financial effects for farmers and growers. There will be periods of great pressure on the margins for farmers and growers, which must be bridged."

More organizations and individuals are participating in the round table discussion 'Global food security in times of war', such as Ukrainian farmer Kees Huizinga and development organization Oxfam Novib. The round table discussion will take place tonight from 18.30 pm to 22.30 pm and can be followed live via the website of the House of Representatives.

Do you have a tip, suggestion or comment regarding this article? Let us know

Linda van Eekeres

Linda van Eekeres is co-writing editor-in-chief. She mainly focuses on macro-economic developments and the influence of politics on the agricultural sector.

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Sign up