Monday, July 27, 2015

Demand growth for food likely to slow

Reports from the European Commission suggest that the growth in demand for food is likely to slow down due to declining population growth and more stabilisation in consumption per capita: Long-term trends

Despite slowing economic growth, China is likely to remain the main target for EU agri-food exports.

All this implies tighter export markets which are likely to restrain prices and make things more difficult for EU farmers.

Wednesday, July 01, 2015

Crop diversification measures have limited impact on farm income

The controversial crop diversification measures introduced in the last CAP reform have had a limited impact on farm income according to a new study: Crop diversification

However, individual farms may have been more substantially affected with some experiencing an income loss of as much as 10 per cent. However, it should be noted that only 38 per cent are farms are affected by the measure.

The NFU has complained about it a great deal in the UK and these figures question whether the measures are having much impact on their members. However, it may be that what was resented was what seen as an unnecessary intervention in farm level decision-making rather than any financial impacts.