Farmers' protests in Europe: competitiveness challenges and impacts on Brazilian agriculture

Farmers in Europe have been holding protests in several countries, including France, the Netherlands, Belgium, Poland, Romania, Slovakia, Hungary, Bulgaria, Spain, Italy and Germany. The concerns driving these protests cover a variety of issues, but generally include criticism of the increasingly restrictive agricultural and environmental policies of the European Union (EU), competition from imported products — intensified by the entry of cereals from Ukraine due to the agreement to absorb its production in the context of the conflict with Russia — and the reduction in margins due to the increase in production costs.

These movements have been exacerbated in recent weeks by the protests, but European farmers have been expressing concerns about the future for some years now, claiming that current policies create an environment of unfair competition. Although they have historically relied on large subsidies, they have made support for the ecological transition envisaged in the Green Deal conditional on increased financial support.

In France, the EU’s largest agricultural producer, responsible for 18% of the bloc’s production, dissatisfaction stems mainly from the withdrawal of subsidies, the increase in water consumption rates and the bans on pesticides and herbicides imposed by strict regulations from Brussels. In confronting what they call “unfair competition”, they are expressing a demand for market restrictions on imported products, which has led to demonstrations against the EU-Mercosur Agreement by the government itself. In light of this context, the European Commission announced a “strategic dialogue” with producers to ensure more equitable production conditions.

Ultimately, the protests could exert such pressure that they could result in losses beyond the Mercosur Agreement. A resurgence of environmental impositions on European suppliers is one possible implication, configuring a strategy adopted to mitigate the tensions arising from the protests. In these circumstances, although environmental issues may not be the core intentions, the implementation of measures of this nature has the potential to alleviate internal unrest within the EU.

To learn more about the topic, access the recent interviews with Insper Agro Global coordinator, Marcos Jank, here:

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