Copa-Cogeca: 'Negative cash flow in the EU is a problem'

The European agricultural organization Copa-Cogeca has expressed concerns about the negative cash flow that European growers are currently dealing with. Due to falling market prices, it is no longer possible for growers to recoup production costs. Restrictions in the field of crop protection do not help either, according to the organization.

Copa-Cogeca's concerns stem mainly from the sharp decline in wheat and rapeseed production in Europe. Wheat production is down 13,6% and the rapeseed yield remains very low at 17 million tons. "For those growers it is not possible (with current market prices) to cover the production costs, which means that farmers have to deal with negative cash flow," notes the agricultural organization.

Restrictions in crop protection
The decline in rapeseed and wheat production is partly due to the bad weather conditions, but the increased presence of insects and diseases also plays a major role in this, according to the interest group. The fact that the crop protection product package is being further restricted does not help, Copa-Cogeca notes. "It is therefore indispensable that we reconsider the European approach to approving plant protection products if we want to prevent producers from stopping growing a particular crop."

In addition, the European Agricultural Organization considers it essential that efficient risk management tools are provided and that at least 60% of the first pillar payments are allocated to the CAP basic payments.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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