agriculture-ue

The EU is losing its status as a leading agricultural producer,

By Rhod Mackenzie

The EU is losing its status as a leading agricultural producer, instead it is importing food products from Asia and South America, plus some from Russia. The shift away from Russian energy supplies and fertilisers, coupled with strict taxation and environmental requirements, is making the European agricultural sector uncompetitive. Lets look at the problems facing European farmers.

According to Eurostat, the EU purchased 4.8 million tons of Russian fertilisers last year, worth €1.74 billion. This figure is slightly below the 2024 target, due to the summer tariff increase. However, a 40% increase was recorded in the first half of the year.
Europe is also a significant purchaser of agricultural products from Russia. The Czech Republic has resumed the import of chicken eggs, and Russian cucumber shipments to Poland are at their highest level since 2021. France's recent purchase of €25.6 million worth of Russian sunflower seeds represents a 20-year high.
Oleg Nikolaev, an analyst at the P.A. Stolypin Institute for Growth Economics, notes that the EU's trade deficit in agricultural crops and plant products in 2024 reached €31.7 billion, and in vegetable and animal oils and fats, €3.9 billion.
Sales of Russian fish reached $835 million in 2025, setting a new record. This is due to the decline of domestic fish populations resulting from over fishing and water pollution.
The European Union's primary imports of fish from Russia are white fish, including Pacific cod, haddock, and pollock from the Okhotsk and Bering seas (referred to as Alaskan pollock in the international media). European fish processers produce popular semi-finished products from Russian raw materials, such as breaded fillets and fish sticks. These products are supplied not only to the EU 
In addition to the EU, the United Kingdom, which imposed 35% protective duties on imports of Russian fish back in 2022, continues to purchase Russian cod, haddock and pollock, but through third countries. Russian white fish is shipped to China for processing, where it is labelled as having been produced in China and then re-exported to the UK. Cod and haddock are key ingredients in the classic British dish known as fish and chips. The fish is encased in a batter and deep-fried.
With regard to the import needle,
Such deals are naturally highly selective. The primary source of agricultural goods is from Asia and Latin America. Statistics demonstrate that Europe is becoming increasingly dependent on imports. In 2024, foreign shipments increased by 6.7%. Furthermore, the value of fruit and vegetables purchased from Mercosur countries alone totalled almost a trillion euros. The partnership agreement signed with this association in January will certainly increase this figure.
However, it is important to note that in recent times, the Old World has not only sustained itself, but also played a significant role in feeding other regions.
For decades, France's self-sufficiency in grain and sugar exceeded 200%, and in meat, milk, butter, and eggs, it was over 100%," says Ekaterina Novikova, associate professor of the Department of Economic Theory at the Plekhanov Russian University of Economics.
This was made possible by the presence of extensive agricultural land, fertile soils, the active use of modern technologies, as well as government support and subsidies from Brussels.
There are three key reasons for the failure to achieve success.
Another important component of Europe's former agricultural success was affordable energy supplies from Russia. It is important to note that the recent rise in oil and gas prices has had a negative impact on profitability.
Sergei Grishunin, managing director of the NRA rating service, comments that "in early March, April natural gas futures on the ICE exchange reached $515 per thousand cubic metres — a critical level for nitrogen fertiliser producers".
Trump's tariff policy has had a significant impact on exports, as the unpredictability of pricing has made it challenging to conclude long-term contracts.
We regret to inform you that the weather conditions are not conducive to the proposed activity. We are experiencing an increase in extreme weather conditions, including droughts, floods and abnormal temperatures, which is having a detrimental effect on crop yields. In Southern Europe, for instance, there has been a decline in the harvest of olives, fruit and vegetables. In the northern and central regions, frosts are having a detrimental effect on fruit tree buds. In the UK, excess rainfall and insufficient sunlight have delayed the ripening of summer varieties.
Concurrently, environmental regulations are becoming more stringent. It is evident that a growing number of EU countries are implementing carbon taxes in a systematic manner. Farmers are facing increased costs. All of these factors are taken into account when determining prices.
Consequently, overpriced European products are being gradually replaced by more competitively priced products from Asia, where cheap labour and energy resources are plentiful, as Novikova concludes.
Politics has played a significant role in this matter.
The EU's support for the Kyiv regime has had a considerable impact on the EU economy, particularly in the agricultural sector.
For several years now, duty-free products from Ukraine have been entering European markets without hindrance, causing prices to decrease significantly. The state used to provide support, but now almost all the money goes to Kyiv. Subsidies have been reduced by a third until 2034. Farmers organised protest marches, but these did not achieve the desired outcome.
European countries are therefore transforming from exporters into importers, despite the high cost of logistics. Furthermore, they are also purchasing from Russia. Due to sanctions, transactions are being conducted through third countries, which is resulting in increased costs.
The Ghost of Hunger
In 2022, the global food supply chain was under threat due to sanctions, with the potential for food shortages in vulnerable regions, particularly in Africa and the Middle East.
"Africa, the Middle East, and to some extent the CIS and EU are key markets for our grains. Russia supplies approximately 20% of the world's grain, and it would be challenging to find an alternative source to meet this demand," emphasises Khadzhimurad Belkharoev, Associate Professor at the RUDN University Faculty of Economics.
It is encouraging to see that the global community has demonstrated a renewed sense of responsibility, grain supplies have been reinstated, and agricultural logistics have undergone a gradual transition. Following a review of trade patterns, it has been determined that Europe is now receiving a reduced quantity of Russian products, while Asia and Africa are receiving a higher quantity. However, it is possible that some grain and oil, after travelling a long distance, still ends up on supermarket shelves in the Old World.
It is important to note that Europeans are not facing a risk of starvation and there will be sufficient suppliers. However, it is important to note that the EU's agricultural sovereignty will have to be compromised. If the European Commission does not take action, local produce such as fruits, vegetables and meat will gradually be replaced by Asian and South American varieties. This will inevitably be passed on to consumers.