EU farmers upbeat about economic future

European farmer economic optimism rose in Q1 2017 relative to 2016, when spirits hit an all-time low, a survey by the joint EU-wide farmer unions Copa and Cogeca has found.
EU farmers upbeat about economic future

Copa-Cogeca’s analysis of the Multinational Farmers’ Confidence Index of 8,000 farmers in ten EU states links farmer optimism with sustained demand for dairy products and modest growth in EU milk production, plus growth in EU meat exports.

Pigmeat exports, however, are likely to fall due to lower production and the consequent increase in prices.

Copa-Cogeca secretary-general, Pekka Pesonen, said: “Although agricultural commodity prices remain at quite a low level in many sectors, the situation has stabilized since 2016, and our latest agricultural barometer survey shows that confidence amongst farmers about their future prospects is starting to pick up, compared to previous years.

“Commodity prices in many sectors have remained relatively stable since the second half of 2016, notably in the dairy, pork, fruit and vegetable sectors, and we are seeing better prices than two years ago in sectors like dairy.”

Nine of the ten member states surveyed — Belgium, Denmark, Germany, Italy, France, the Netherlands, Poland, Romania, Sweden — were more confident for their economic futures, albeit at different levels.

However, confidence has fallen among UK farmers as uncertainty about Brexit looms. The political environment since the UK voted to leave the EU is a key driver for this fall in farmers’ long-term confidence, the survey shows.

Many farmers also told Copa-Cogeca that they are also still feeling stifled by Common Agricultural Policy (CAP) implementation and the excessive bureaucracy under the CAP.

Market volatility is also another factor affecting prices. The recent drought, frost and heatwaves in many regions of the EU could consequently affect some production sectors this year, especially the arable crops and wine sectors. The Copa and Cogeca confidence index is calculated twice yearly.

Meanwhile, in a separate survey by the National Farmers Union, UK farmers voiced concerns about the labour challenges which Brexit is likely to create across their industry.

Britain needs some 80,000 seasonal workers to harvest the nine million tonnes of fruit, vegetables and flowers produced each year, and another 13,000 are needed to prepare poultry for our Christmas dinner tables.

The NFU stated: “The startling fact is that currently more than three-quarters of the workers picking, processing and packing our fruit and veg come from eastern Europe.

“And almost 60% of the seasonal Christmas workforce plucking and packing our much-loved festive birds, comes from beyond our shores.”

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