News

Given the spread of COVID-19, grocery stores are being redeemed in many parts of the EU, so EU governments re-assure consumers that there is still enough food, so there is no reason to buy stocks. Food producers are ready for increased production, companies have prepared contingency plans and will continue to ensure compliance with European food safety standards. However, the sector faces some constraints, notably labour shortages. Italy stressed that there is no evidence that coronavirus is spread by food, therefore calls for non-interruption of ordered food supplies from Italy, perceiving refusal of food supplies as a violation of EU measures against unfair commercial practices. Italy is currently also facing a labour shortage due to quarantine, restrictions on population movements between regions, and the closure of European borders. Both the Irish and the Luxembourg Ministry of Agriculture have put in place measures (available here) to ensure the continuity of agri-food production. In Ireland, orders increased particularly in the dairy, meat and vegetables sectors. Irish Minister of Agriculture Michael Creed urged Janusz Wojciechowski, Commissioner for Agriculture and Rural Development, to use the market support available under the CMO Regulation in case of market disruption. Ireland also calls for priority testing of agricultural and food sector workers, and farmers are also seeking to introduce new health insurance. Farmers in the United Kingdom are asking the government to classify food chain workers into the necessary workers category, which would strengthen the protection of the agricultural sector. Germany is self-sufficient in the production of basic foods - wheat, potatoes and pork - but there may be a problem with the shortage of seasonal workers due to the closure of borders because many of them come from other countries, seasonal workers will also be missing in Denmark. In Spain, the flower market has almost ceased to exist (there is no demand) and there is also a problem of providing transport for agricultural and food production due to labour shortages. The flower market is also facing a crisis in the Netherlands, Croatia and Belgium. In Austria, workers are mainly lacking in the fruit and vegetables sector.

On 18/03/2020, the largest European agricultural organization Copa-Cogeca and the European Council of Young Farmers (CEJA) called on the President of the European Commission, Ursula von der Leyen, to ensure the functioning of the single agricultural and food market in the EU. The call to the Commission is a response to several measures, including, for example, partial border closures that Member States have introduced in recent days to prevent the spread of coronavirus. At the same time, organizations are calling for extraordinary support for the agricultural and agro-tourism sector from sources outside the CAP, and for the implementation of an initiative to ensure stable food supplies (more information here). In addition, Copa-Cogeca, together with the representatives of FoodDrinkEurope and Food and Beverage Producers and the European Liaison Committee for Agricultural and Agri-Food Trade (CELCAA), issued an opinion requesting the Commission to ensure the distribution of food and packaging materials (more information here). The European Dairy Association (EDA) has asked the Commission to provide support to dairies to build strategic stocks through the private storage aid scheme (more information here).

The European Council closed the Schengen area for one-month last week. At the same time, some European countries close their own borders, creating complications for the transfer of agri-food commodities across borders. In the past week, several kilometres of tailbacks were formed, for example at the Polish, German, Italian, or some Baltic borders, waiting times ranged from 2.5 to 20 hours. This disproportionately extends the time of transport of live animals, and companies are also at risk of terminating contracts from retail chains for late delivery of goods. The European Commission proposes to reserve special lanes for food-carrying trucks to minimize supply chain disruption.

On 17/03/2020, the European Commission granted postponement of the deadline for applications for direct payments and some payments under rural development programs. The application deadline was extended from 15/05/2020 to 15/06/2020. The reason for the postponement is the spread of the COVID-19 in Europe, Italy being the first to ask the Commission to postpone the deadline, followed by Spain. The granting of the deferral is valid for all Member States and all eligible farmers, but Member States may decide not to apply the deferral.
More information is available here.

On 17/03/2020, the European Commission confirmed its interest in implementing the European Green Deal despite the spread of COVID-19 in the Europe. President of the European Commission Ursula von der Leyen called the Green Deal the flagship of the current Commission. Czech Prime Minister Andrej Babiš abandoned the Green Deal due to coronavirus outbreak on 16/03/2020. On the contrary, the support of the maintenance of the European Green Deal as a key European priority was supported by the Chairman of the European Parliament's Committee on the Environment, Public Health and Food Safety Pascal Canfin (FR, Renew Europe). However, some of the initiatives planned for the coming weeks and months are likely to be postponed allowing proper debate in the institutions.
More information is available here and here.