EU AGRI-FOOD MARKET IN SHOCK DUE TO WAR IN UKRAINE
On 5 April, the European Commission published the spring 2022 edition of the short-term outlook report, which presents a detailed overview of the latest trends and prospects for a range of agri-food sectors.
The report highlights that Russia’s military aggression against Ukraine has significantly disturbed global agricultural markets. This has created more uncertainty regarding the future availability of grains and oilseeds and has added a layer of instability to already tense markets. The EU is largely self-sufficient for food, with a massive agri-food trade surplus, and the EU single market can once again be expected to prove its ability to absorb shocks. Nevertheless, there are some concerns around affordability due to high market prices and inflationary trends.
The Commission concludes that the adaptation to rapid changes stemming from the war in Ukraine and the consequent price surges both in input and output markets will be challenging in the short term, with an impact on trade flows and supply chains, in agriculture and beyond. It could create opportunities in the long term, with the EU becoming less dependent on input imports, diversifying its energy sources, and therefore promoting an even more sustainable food system.
Source: European Commission