Copa and Cogeca revise EU grain forecasts downwards and underline difficult market situation

Copa and Cogeca Cereals Working Party Chairman Max Schulman said “Farmers in some Central European and Northern countries -Estonia, Latvia, Lithuania, Denmark, Sweden, Poland, Germany and Finland - have been hit by severe drought, which is reaching catastrophic proportions. Whilst some southern countries(Iberian Peninsula, Italy, France) have been experiencing floods. We consequently expect about 6% drop in the EU cereals harvest compared to 2017, totalling 273.8 million tonnes”.
 
“For soft wheat, a 2.2 % cut in the area is predicted as prices remain below production costs and farmers continue to be hit by the cost-price squeeze”, Schulman added.
 
Copa and Cogeca Oilseeds Working Party Chairman Arnaud Rousseau went on to warn of the estimated 6% drop in EU oilseeds production (2 million tonnes less) , compared to last year, reaching 31.5 mt. “We are also concerned about the substitution of EU crop-based biofuels by palm oil and biodiesel imports. EU crop-based biofuels which generate a protein-rich co-product for use in animal feed must be promoted against palm oil in the EU. In addition, we call on the Commission to implement urgently the countervailing duty on biodiesel imports originating from Argentina”.
 
For protein crops, a 5% (100,000 hectares) cut in the EU-28 area compared to 2017 is due to the ban on the use of plant protection products (PPPs) in Ecological Focus Areas (EFAs) which we are very disappointed about. The production of protein crops is expected to be about 1 million tonnes less”, Rousseau added. 
 
To support farmers suffering of extreme climatic adverse effects, Copa and Cogeca are consequently requesting an advance payment from the EU Commission to help farmers stay afloat. Copa and Cogeca call on the Member States to fully implement tools dealing with climatic risks. Please find attached the figures.