On Monday, January 30, Minister of Agriculture Didzis Šmits participated in the meeting of the EU Agriculture and Fisheries Council in Brussels, where the member states together with the European Commission (EC) and the Swedish Presidency of the EU Council deliberated on the impact of the energy crisis and Russia’s war in Ukraine on agriculture and food production and discussed solutions for the situation.
Since May 2022, the price of energy in Latvia and the Baltic States has grown much faster than the average in the European Union every month. The price of electricity in Latvia in the 3rd quarter of 2022, compared to the 3rd quarter of 2021, had grown by 220 percent. Also, for example, the purchase price of wheat in 2022 was on average 46 percent higher than in 2021. Despite the downward trend, the price of grain still remains at a significantly high level. Consequently, the gap between farmers’ income and expenditure remains or even continues to increase.
“We must not for a moment forget that food production and agriculture is a matter of the country’s national security,” emphasized the Minister of Agriculture Didzis Šmits. “In Latvia’s opinion, the European Commission should not hesitate with support measures for farmers and food producers. Farms and companies must ensure the continuation of production even in the conditions of the energy crisis and must be given the opportunity to adapt to the current market, as it has been created, as Russia implements aggression in Ukraine.”
On the day of the meeting, the Minister of Agriculture met with two EU Commissioners. With the EU Commissioner for Agriculture and Rural Development, Janusz Wojciechovski (Janusz Wojciechowski) Minister Didzis Šmits discussed the preparation of the mid-term review of the EU multi-year budget planned for this year and the need for additional funding for the implementation of the climate and environmental requirements of the EU’s Common Agricultural Policy. Also, during the meeting, the possibility of using the agricultural reserve funding of the Common Agricultural Policy in 2023 was also discussed in order to partially compensate farmers and food producers for the ever-increasing costs of raw materials and raw materials. Both agreed that food security is a matter of national security for each country.
On the other hand, with the EU Commissioner for Environment, Oceans and Fisheries, Virginia Sinkevičas (Virginijus Sinkevičius) Didzis Šmits spoke about current fisheries issues, as well as environmental and climate initiatives directed by the EC.
The Ministry of Agriculture
