War in Ukraine continues to weigh on European growers

Published 2023년 4월 7일

Tridge summary

The horticultural sector in the EU is facing challenges such as the aftermath of the Russian invasion of Ukraine, high production costs, food inflation, and winter drought. Despite these challenges, the sector has seen some positive macroeconomic forecasts and an increase in income. The high commodity prices have helped offset the high production costs, with significant sectoral and regional differences. The availability of nitrogen-based fertilizers is expected to increase and become more affordable. The apple harvest is expected to be around 12.2 million tonnes, with nearly half expected to be processed due to the higher availability of lower quality apples and high energy costs for storage. Orange production is expected to decrease by 13% due to dry and warm weather conditions in Spain and Italy.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The negative consequences of the Russian invasion of Ukraine and the resulting high production and cultivation costs and food inflation continue to weigh on the horticultural sector and consumers' purchasing decisions. In addition, large parts of the EU have experienced winter drought after last year's hot and dry summer, further worsening water availability in regions where water resources were already at record lows. This could lead affected horticulturists to abandon water-intensive crops. The EU's current macroeconomic forecasts are relatively more positive than in autumn 2022, despite uncertainty about energy supplies for the coming winter and recent tensions in financial markets. High commodity prices helped to offset high production and cultivation costs last year and horticultural income has increased on average, with significant sectoral and regional differences. The latest estimates report suggests that a fall in energy inflation could provide some relief in growing ...

Source: AGF