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On 17/06/2024, the Member States of the EU Environment Council adopted the trialogue agreement on the Nature Restoration Law. The institutions within the trilogue had already reached an agreement in November 2023. The European institutions agreed to renew Article 9 (renumbered Article 11) and to maintain its structure - the article concerns commitments for the agricultural sector and agricultural ecosystems (the article was largely deleted in the plenary vote on the European Parliament's position in July 2023). However, for the implementation of Article 9 (Article 11), the institutions have agreed to establish a so-called emergency brake. The European Parliament formally voted on this agreement on 27/02/2024, and adopted the agreement by 329 votes to 275, with 24 abstentions. The agreement renews Article 9 (Article 11) and maintains its structure, moving from a results-based approach to an effort-based approach.
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Hungary will hold the Presidency of the Council of the European Union from the beginning of June 2024 until the end of 2024, replacing the current Belgian Presidency. Although Hungary will take over the presidency at a time when the new European Commission is being formed and the new MEPs will mainly be preparing for the so-called "grilling" of the Commissioners-designate in the various committees, the Hungarians are preparing a list of agri-food priorities they would like to address during their presidency. Hungary would like to conclude the topics of food waste, green claims and soil health monitoring (trialogues on all these areas will be launched at the beginning of the Hungarian Presidency). Debates should continue on new genomic techniques, a topic that has long been blocked at Council level and on which the Belgian Presidency has repeatedly failed to find an acceptable compromise. Areas that Hungary has not yet included in its priorities include animal welfare during transport and the Nature Restoration Law.

Last week, Agriculture and Rural Development Commissioner Janusz Wojciechowski presented details of the market situation in the EU. Sugar prices remain high, reaching €844 per tonne in March 2024, 86% higher than last year. Sugar prices on world markets have fallen slightly, so a similar development is expected in the EU. Average milk prices in the EU remain stable and 17% above the five-year average. Butter prices are 25% higher compared to 2023. Beef prices remain flat and input prices have fallen, so producer profits have increased. EU pork production increased slightly in early 2024, while poultry meat production increased significantly and exports and imports increased. Egg prices have fallen since January 2024 and are 17% below 2023 but 30% above the five-year average. Olive oil prices remain high due to two years of poor harvests in Spain. The wine market remains weak due to declining domestic and global consumption.

The European elections will take place on 06-09/06/2024 and their outcome will affect not only the future composition of the European Parliament but also the composition of the European Commission. Just one day after the elections, on 10/06/2024, negotiations will start on who will be the President(s) of the European Parliament, the European Council and the European Commission.
Should the EPP, Europe's largest political group, defend its position as the strongest European group, it will submit a proposal for the appointment of the current European Commission President, Ursula von der Leyen, for the upcoming Commission mandate until 2029. The current President of the European Parliament, Roberta Metsola, who is also seeking another mandate, is expected to convene the leaders of the European political groups for negotiations as early as 11/06/2024. The European Council will start negotiations on a new President during an informal meeting on 17/06/2024, the current President Charles Michel is not standing again. The position should be decided during the formal European Council meeting on 27/06/2024.
One of the key issues not only for the European elections themselves, but also for the negotiations after the European elections, will be agricultural policy, in addition to trade, defence or the budget. The reform of the current Common Agricultural Policy will be on the agenda right from the start of the new mandate of the European institutions (the European Commission could present a legislative proposal as early as mid-2025), as will the negotiations on the EU budget for the period 2028-2035.
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The European Commission's Directorate-General for Agriculture and Rural Development (DG AGRI) has commissioned the research companies EEIG, AFZ and CEREOPA to carry out a "Study on feeding strategies for diversification of protein sources used in different livestock production systems in the European Union". The study was published on 24/05/2024 and aimed to identify options and solutions to the long-term deficit in the availability of plant proteins in the European Union. The researchers concluded that the European Union should provide more support to agriculture in the production of plant proteins, while ensuring that the prices paid to farmers for the production of soya, legumes or sunflower are competitive. However, even with strong political will, the transition from the current situation to zero imports of protein-rich products, if possible at all, would take decades. The researchers recommend that the European Union should begin the process of reducing imports of vegetable protein and diversify sources to secure supplies from close partners (e.g. Ukraine). While this would not reduce imports per se, it would reduce the risk of over-reliance on a small number of suppliers. In addition, the competitiveness of protein sources within the EU should be improved by developing a research plan combining public and private research to increase protein crop yields and protein content, reduce limiting factors for production or develop innovative raw materials. Tied CAP support could also be used to boost support for plant protein production, the Union should support farmers in making the necessary investments to develop all available alternatives and increase support through harvest insurance.
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