Fertilizer costs have seen a significant increase this year, according to agricultural representative G. Špakauskas. He attributes the initial rise to the implementation of the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) tax.
This situation was subsequently exacerbated by supply disruptions stemming from the crisis in the Hormuz Strait. Špakauskas noted that the sharp increase in fertilizer prices led to shortages in some products during the spring season, resulting in some farmers applying less fertilizer than originally planned. Consequently, he warned that the anticipated harvest yield may also be reduced.
Furthermore, some farmers are reportedly considering either scaling back fertilization efforts or foregoing them entirely in the autumn due to cash constraints. The agricultural representative pointed out that the economic pressures on farmers are compounded by stagnant market conditions for staple goods. Specifically, the prices for both grain and milk have remained largely unchanged compared to levels seen a decade ago.
Similarly, the overall prices for agricultural products have shown little variation over the past ten years. These combined factors create a challenging economic environment for the farming sector within the union.
Topics: #farmers #prices #union
