AGP Executive Report

Ukraine Grain Crisis: Poland and Romania have rejected Ukraine’s request to expand agricultural transit corridors and add subsidies, warning that extra freight would displace local producers while Black Sea strikes keep grain trapped. Climate & Food Costs: Italy’s Parmigiano Reggiano “cheese banks” face higher electricity and cooling costs as extreme heat strains warehouse temperatures. Animal Health & Farming Rules: Ireland granted force majeure for the ACRES geese and swans action, easing the Oct 1 land-vacating requirement for drought-hit farmers. EU Budget Fight for Farmers: Seventeen EU leaders urged the Irish presidency to protect farm funding and resist budget cuts. Market Pressure: UK beef prices rose as tight prime cattle supplies supported autumn demand. Policy & Compliance: EU Commission approved €170m Bulgarian state aid for farmers facing higher fuel and fertiliser costs. Biodiversity & Land Use: Asturias wolf-control plans (2026-27) face a legal challenge from animal welfare groups over the scientific basis for culling.

Vulture vs. farmer tensions in France: The League for the Protection of Birds is expanding vulture feeding sites in the Grands Causses, but some farmers still resent the extra handling and logistics of leaving carcasses on land. Farm funding pressure in the EU: EU leaders are pushing to protect farm budgets in the next financial framework, as multiple countries warn against cuts that would hit CAP and regional support. UK bluetongue outbreak spikes: Britain is facing its worst-ever bluetongue outbreak after a hot summer, raising pressure on vets and livestock keepers. Ukraine grain bottleneck hits food prices: Deadlock around Ukraine’s grain exports is expected to push global food prices up by more than 9%, with port attacks and logistics constraints still biting. Antimicrobial residues spotlight in beef: A study of Argentine feedlots found veterinary drug residues in soil, including monensin and critically important antimicrobials, raising concerns about stewardship and traceability. Croatia bioeconomy framework: Croatia is setting up a national bioeconomy coordination body and a 2027–2035 plan spanning agriculture, forestry, fisheries, aquaculture and biotech. Scotland red meat push abroad: QMS is promoting Scotch beef, lamb and pork at SIAL Paris, targeting premium buyers and first-time exporters. EU–Ukraine solidarity lanes blocked: Poland and Romania say they can’t do more as Ukrainian grain and low Danube water levels overload routes, threatening sales for local farmers.

EU Budget Push for CAP & Farm Funding: Seventeen EU leaders urged the Irish presidency to protect the Common Agricultural Policy and Cohesion funding in the next MFF, warning cuts would weaken the EU and undermine public support. Animal Health Alert (Bulgaria): Bulgaria confirmed two outbreaks of sheep and goat pox in Kyustendil region, triggering protection and surveillance zones and movement restrictions. Livestock Disease (UK): Britain reported its worst-ever bluetongue outbreak on record, with cases already exceeding the total from the previous three years, linked to climate-driven spread of BTV-3. Farm Costs & Food Prices (Greece): Greek rice areas are set to shrink sharply as energy, fertilizer and fuel costs bite, while duty-free imports and weak safeguards pressure farmgate prices. Energy Pressure on Agriculture (G7/EU): G7 nations agreed to release major diesel and fuel reserves after US pressure, aiming to ease record fuel costs that hit harvest logistics. EU Legal Pressure (Cyprus): The European Commission referred Cyprus to the EU court over waste-management failures, including insufficient pre-treatment before landfill. Trade & Markets (Spain): Spain topped EU farmgate lamb prices at over €10/kg, signaling continued price strength in parts of the meat sector.

Black Sea Shipping & Grain Markets: Wheat stayed under pressure as diplomacy to restart Black Sea shipping intensified; CBOT December wheat slid about 2% early week after USDA raised winter wheat estimates, while Euronext hit a six-week low before recovering. Energy Shock Hits Farms: The G7 agreed to release 100 million barrels of oil and diesel via the IEA, with diesel “frontloaded” in the first 20 days, after US pressure and record diesel prices—fuel costs remain a direct concern for European agriculture. EU Protein Push: Brussels plans to grow indigenous protein feed supply, aiming to lift EU-origin protein crops used in livestock feed from 25.8% (2025) to 35% by 2035, using CAP incentives and demand-side measures. Producer Support in Ireland: Ireland reopened the ESSPO scheme, offering up to €30,000 over three years for early-stage producer organisations to strengthen farmers’ bargaining power. Animal Health Watch: Ireland is entering a higher-risk period for avian influenza as winter and migration increase exposure risk; DAFM urges strict biosecurity. Sheep Prices: Spain leads EU farmgate lamb prices at over €10/kg amid tight supplies. Wind Investment in Romania: Rezolv Energy energised Phase 1 of the 461 MW VIFOR Wind Farm (192 MW) in Buzău, supporting wider rural energy transition.

EU farm funding stand-off: Seventeen EU countries (including Bulgaria, Italy, Poland, Spain and Greece) have urged the bloc to protect CAP and cohesion money in the 2028–2034 budget talks, setting up a direct fight with Germany and other budget-cutters. Diesel pressure hits agriculture: After US threats of a diesel export ban, the G7 agreed to release 100 million barrels of crude and diesel over four months, with a front-loaded diesel release in the first 20 days, while the EU rejected any diesel export ban as damaging. Bulgarian cost relief: The European Commission approved €170m in state aid for Bulgarian farmers facing higher fuel and fertiliser costs linked to the Middle East crisis. Animal health alert: Ireland confirmed Shamonda virus on two Cork dairy farms; officials say there’s no trade or movement restriction, but pregnant animals are the main concern. Food procurement push: The Commission is finalising rules allowing public buyers to consider “fair remuneration for farmers,” animal welfare and organic/quality schemes in food procurement. Trade checks on poultry and honey: The EU says Brazil’s audit is satisfactory and, after procedures, exports of poultry meat and honey to the bloc could resume, with a technical review set for Oct 20–21. Climate shock context: A Copernicus bulletin says more than half of Europe saw dangerous heat stress this summer, with major crop losses reported. Lebanon wine strain: Lebanon’s wineries kept production going during conflict, but demand collapse and export pressure are squeezing sales.

Heat & Drought Costs: A record-breaking European heatwave and drought is expected to cut grain output by 16 million tonnes, with losses put at about $3.6bn, while higher diesel and fertiliser prices add pressure on farms. Global Food Prices: The UN FAO says world food prices climbed to the highest in nearly four years, lifting sugar, cereals, meat and dairy—linked to hot weather, logistics disruptions, and El Niño risks. Diesel Supply Clash: The US is pressuring Europe to release strategic diesel reserves, warning of possible export restrictions; EU and UK talks are underway as diesel hits record levels and farmers face higher operating costs. Energy Security Spillover: Ukraine struck Russia’s Samara oil hub, with fires reported at a major Transneft tank farm—raising concerns for wider fuel and industrial supply chains. Biomethane Push (Ireland): Ireland opened a €32m biomethane grid injection facility in Mitchelstown, aiming to scale farm-and-food-waste renewable gas into the national network. Market Access (EU-linked): Bihar’s makhana export drive reached Greece with a 1 MT shipment, highlighting value gains from export-oriented supply chains. Livestock & Feed Stress: EU sheepmeat supplies are tightening amid persistent challenges, adding to broader pressure on protein and feed availability.

EU-US Diesel Pressure: The US has told France and Germany to release emergency diesel stocks or face a potential export ban, escalating a fuel-price fight that matters for European trucking, farming and food logistics. Food Trade & Conflict: G20 ministers agreed it’s “not acceptable” to weaponize food and agriculture in conflicts, as Black Sea strikes keep disrupting export capacity. EU Climate Enforcement: Dutch group Both ENDS filed the EU’s first climate and environmental complaint against New Zealand under trade rules, testing whether Paris commitments in trade deals can be enforced. Aquaculture Feed Stress: German insect-feed producer FarmInsect has folded, renewing doubts about whether insect protein can reach fishmeal price parity at scale. Dairy Investment: Arla is investing €63m in skyr and cottage cheese production, signaling continued protein-focused expansion in Europe. CAP & Farm Funding Tensions: Cornish farmers and MPs are pushing back hard over the handling of the UK’s £253m SFI farming fund, with calls for earlier reopening and fairer payments.

Dairy Investment: Arla will pump €63m into higher-protein dairy, expanding skyr production in Germany (€35m) and cottage cheese in Sweden (€28.3m), as demand keeps climbing across Europe. Climate & Water Stress: Greece’s Koroneia Lake has shrunk to under a tenth of its original size after a decade of low rainfall and over-irrigation, leaving farmers increasingly reliant on pumping water for crops. Energy Pressure on Farms: The US is urging France and Germany to release emergency diesel stocks, warning of possible US export restrictions if Europe doesn’t act—fuel costs remain a major strain for agriculture and transport. Sustainable Food Data: Beneo is expanding independently verified life cycle assessments beyond carbon footprints to include land and water impacts, aiming to support procurement and environmental claims. Livestock Breeding: Armenia imported Holstein and other breeding heifers from Germany by air for the first time, part of a livestock upgrade programme for 2025–2029.

EU Food Safety: The European Commission is assessing Namibia’s foot-and-mouth disease outbreak after authorities detected cases in Karasburg, with EU officials warning of potential impacts on animal and public health and on Namibia’s beef access to European markets. EU Trade & Regulation: Brussels has confirmed a ban on Brazilian beef entering the EU for at least 24 months, after concerns over the hormone oestradiol 17ß; EU officials say return would require assurances and audits. CAP & Farm Support (Ireland): Ireland’s agriculture ministry will seek EU force majeure coverage so ACRES geese and swan farmers can cut forage on protected lands for their own livestock needs, while keeping payments; separate producer organisation grants up to €10,000 a year have also reopened. Farm Costs & Fuel: Ireland announced €1m paid to 650 farmers plus another €1.5m emergency support opening in November, aimed at extra costs tied to “coloured” diesel and fertilisers. Livestock Nutrition: A feed-industry push argues formulation must better match animal physiology as heat stress rises across Europe. Agri-Finance (EU-backed): EU’s AgriFI has committed $2.5m to Nigeria’s Tomato Jos to expand processing, climate-smart production and smallholder sourcing.

EU Deforestation Rules Hit Ireland: Ireland’s draft plan to transpose the EU Deforestation Regulation would bring up to €10m fines and new domestic criminal offences for operators and traders tied to cocoa, coffee, cattle, oil palm, soya and more. CAP Pressure in Brussels: EU farm ministers are pushing toward an October deal on post-2027 CAP, while frugal states demand major budget cuts and some governments back farm aid reductions to fund other priorities. Drought and Diesel Strain Farmers: Coverage highlights how extreme summer costs and soaring diesel prices are squeezing European farm cashflow, with calls for fuel relief and contingency planning for feed and fieldwork. Biosecurity and Animal Health: Bird flu is reported in a goose at Athalassa park, while vets warn of pig disease risks across Europe. Trade and Market Signals: Cocoa futures slid on stronger dollar and abundant supplies from the Ivory Coast, adding pressure to European chocolate supply chains.

Climate-hit CAP pressure: EU agriculture commissioner Christophe Hansen warned that heat and drought have already caused €14–17bn in damage across the bloc, with grass growth and fodder shortages compounding the harvest losses, and pushed for more water storage and compulsory insurance (only 12% of production is insured). Water resilience push (UK): Carlsberg Britvic is funding a 10-year Rivers Trust partnership to restore rivers, wetlands and floodplains around its Rugby site, starting with reconnecting the River Alne to its floodplain. EU support for farmers (Romania): The European Commission approved €52m for Romanian cattle farmers and €11m for pig farmers under a Middle East crisis temporary state aid framework to offset higher fuel and fertiliser costs. Ukraine logistics for food exports: Ukraine and Germany discussed expanding Solidarity Lanes and alternative transport routes to protect post-harvest produce flows as seaports operate under limits. Energy rules under review: The Commission is considering a one-year delay to methane monitoring/reporting rules for imported fossil fuels, aiming to avoid further fuel-price pressure after 2026. Farm policy debate (Ireland): IFA leaders urged Ireland to resist reduced CAP proposals unless the budget deal is secured, warning small add-ons would mean “disaster.”

CAP & Farm Support: EU agriculture ministers warned extreme summer weather has cost farmers an estimated €14–€17bn, with drought cutting grass supplies and livestock feed pressure rising; the Commission pushed water storage, smarter irrigation and wider insurance coverage. Food Safety & Trade: The European Commission confirmed a 24-month-plus ban on Brazilian beef after hormone concerns, while a separate EU audit suggests Brazilian chicken and honey could be cleared for re-entry soon. Energy Costs for Agriculture: Record EU diesel prices are driving up freight costs and squeezing farmers and businesses, spotlighting how diesel dependence can feed into food inflation. EU Policy & Markets: EU farm ministers are moving toward an October deal on post-2027 CAP, as ministers also debate support for drought-hit farmers. Agri Finance & Risk Tools: CME is expanding into European dairy derivatives by taking over EEX’s European dairy indices, aiming to hedge a market worth about a fifth of global cow’s milk production. Fisheries Fuel Aid: Europêche and ETF urged EU and national governments to extend fuel aid for fishers facing persistently high operating costs. Armenia Trade: The EAEU is set to decide in October on Russian restrictions affecting Armenian agricultural exports, with Armenia seeking support to shift sales toward the EU.

Security & Rural Impact (UK): A farmer’s 999 call helped trigger arrests of five men near RAF Fairford, after three suspicious vans were spotted close to the US-linked base used for Iran strikes; police later evacuated about 85 households, while officials debated how quickly the response moved and whether an Iran-linked motive is most likely. Animal Welfare & Trade (Ireland–France): Animal groups issued legal notices to Irish Ferries over alleged EU breaches in transporting unweaned calves, arguing feeding/rest rules aren’t met and calling for operations to stop or be suspended. Farm Costs & Energy (Europe/UK): Diesel prices stayed near record highs in the UK amid global oil shocks, with knock-on pressure for farmers and food prices; Croatia also signalled a possible diesel drop. Food Safety (EU/Global): A reminder of how quickly contamination can hit supply chains, from aflatoxin risks in hazelnuts to ongoing scrutiny of food safety controls. Sustainable Farming & Nature (Cocoa/Europe): Research highlights that protecting pollinators and biodiversity-friendly systems can boost cocoa yields, offering a nature-led route amid climate and disease pressures. Logistics & Agri-Trade (EU): China-Europe rail freight growth continues, with implications for faster movement of goods into Poland and wider EU markets.

CAP politics in Ireland: Irish MEPs are being urged to push back against plans to fold the Common Agricultural Policy into national payment funds from 2028, with Midlands and Northwest MEP Luke Flanagan warning the “independent CAP” could be weakened if EPP and Renew leaderships don’t change course. EU farm budget pressure: MEPs also face renewed backlash over a proposed 20% cut to the EU farm budget, adding to the uncertainty farmers are already feeling. Fuel cost squeeze for agriculture: Europe is bracing for knock-on effects from talk of a US diesel export ban, with analysts warning it could lift transport costs and feed into higher prices—an issue already tightening margins for farmers and truckers. EU health support with ag links: In Nigeria’s Kwara State, an EU-backed health programme has reached 35,796 people, while EU cooperation also spans agriculture and skills—highlighting how food and rural livelihoods are tied to broader system funding. Security spillover near UK air base: British police arrested five men near RAF Fairford after a tip about suspicious vans; while not agriculture-specific, it underlines the wider risk environment affecting European communities.

CAP & Farm Support Pressure: England’s £233m Sustainable Farming Incentive budget for 2026 was snapped up in six hours, leaving many farmers shut out and raising fresh alarm about how fast nature-linked funding can run dry. Ireland CAP Eligibility Debate: Ireland’s dairy lobby is pushing to tighten CAP eligibility, arguing subsidies should target “active farmers” and exclude low-stock “hobby farmers,” a move that could reshape who qualifies for support. EU Monitoring Tech: Ireland’s Department of Agriculture is tendering an €8m, four-year Area Monitoring System using Copernicus Sentinel data to check compliance for area-based schemes under CAP. Food Prices vs Pay: Euronews reports food costs across Europe rose far faster than minimum wages in many countries, with Spain and France among those losing ground. Diesel Cost Shock: Multiple reports this week point to high diesel prices squeezing farmers and transport, with governments scrambling to cushion the impact. Agrifood Trade & Supply Chains: EU-backed banana support in Cameroon (2013-2024) helped yields and infrastructure, but export markets remain insufficiently diversified. Market Demand Strain: French wine makers report a bumper harvest but cut output, while grape sellers elsewhere face weaker demand.

Diesel shock hits farms and freight: Diesel prices are surging again, with reports of record costs pushing trucking rates higher and squeezing farmers’ margins across Europe and beyond, while governments weigh fuel relief and policy pauses to blunt the impact. Succession stress tool for farmers: An Irish start-up has launched “Furrow,” an AI-based WhatsApp-style assistant meant to keep farm knowledge and compliance on track when successors take over. Fertiliser trade watch: Belarus has ranked 10th globally among fertilizer exporters, underlining how input supply chains are shifting across Europe’s neighbourhood. EU trade support for Armenia: The EU Council has adopted temporary trade-liberalisation measures for Armenian products, aiming to cushion Armenia after Russia-related restrictions. Animal health funding: The EU is providing over €73m to support farmers hit by avian flu and swine fever, including in Italy. Water crisis protest in Northern Ireland: Hundreds rallied at Stormont over toxic blue-green algae harming Lough Neagh, linked to agricultural and sewage pollution.