Supply Lines
Europe plans to better protect its farmers from foreign competition, as part of efforts to safeguard future food security amid growing geopo
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Europe plans to better protect its farmers from foreign competition, as part of efforts to safeguard future food security amid growing geopolitical tensions and extreme weather events.

In a new vision for the agri-food sector unveiled this week, European Union officials said they want to ensure fair pay and support for growers, while simplifying regulations and making sure imports meet the same standards as EU products.

“Europe will protect its agri-food sector against unfair competition and will remain united against geopolitical shocks and threats,” Agriculture Commissioner Christophe Hansen said. “Our farmers and agri-food sector need a level-playing field.”

The new vision comes after farmers last year took to the streets of Brussels, Berlin, Paris and Warsaw to protest against red tape, climate policies and unfair standards — part of a list of grievances.

Officials took note.

Take crop-protection chemicals. The European Commission plans to pursue new restrictions on imported food treated by toxic pesticides banned in the bloc. It will establish a principle that the most hazardous pesticides banned in the EU for health and environmental reasons aren’t allowed back through imported products.

The EU is a huge agri-food exporter and home to some of the world’s most food-secure nations. But it’s dependent on imports of palm oil, seafood, inputs like fertilizers, as well as crops for livestock feed, such as soybeans.

To address those vulnerabilities, the bloc wants to develop a plan to become more self-sufficient in protein crops and diversify imports. It will work to reduce the dependence on just a few nations for fertilizers, and strengthen its own production.

Still, there’s a noticeable shift in thinking from five years ago, when the EU’s Farm to Fork strategy focused on making food more sustainable. The food world has been hit by multiple supply shocks since then, including the pandemic, war in Ukraine and extreme weather.

Climate and food campaigners criticized the new plan for not doing enough to address environmental concerns and shifts in consumer diets. Europeans eat more dairy and meat than recommended, and livestock is a big source of greenhouse gas emissions. 

The EU emphasized that the livestock sector “is and will remain an essential part of EU agriculture.”

It also pledged to hold an annual food dialogue with consumers, producers, retailers and others, and highlighted that climate and sustainability remain important issues.

“Farmers are not only our first victims of climate change, but as well our best defense line against climate change,” Hansen said at a briefing on Wednesday. “And they are pretty much aware that they need healthy soils, that they need healthy and good quality water.”

Other key points from the vision: 

  • The EU will work on accelerating access for biopesticides as an alternative to crop-protection chemicals.
  • It will launch a study on the impact of consumption of ultra-processed foods.
  • It said plant-breeding innovations like gene editing are important for contributing to food security.

Agnieszka de Sousa in London

Charted Territory

Coffee craze | At this month’s Super Bowl, Danone’s commercial featured Channing Tatum tossing a large bottle of STōK Cold Brew Coffee to British soccer players. Nestle’s showcased a game watcher at home consuming a Coffee-Mate product specifically designed for cold drinks. The fun — and expensive — ads reflect a deeper shift in the coffee industry: Not only are consumers choosing cold over hot coffee, but they are also starting to drink it at home instead of just at cafes. Sales of ready-to-drink coffee topped $1 billion in the past year, up more than 80% from 2021, according to data from consumer researcher NIQ. (Read the full story here.)

This Week’s Must Reads

  • US farmers would bear the cost of tariffs on imported Canadian fertilizers should President Donald Trump’s levies take effect, according to top supplier Nutrien.
  • Shake Shack is warning that its competitors may double down on beef and chicken as egg prices surge.
  • Executives from Hershey and Mondelez International signaled more price increases may be coming as the chocolate makers navigate a sustained rise in cocoa prices.
  • Dunkin’ will no longer charge extra for nondairy milk, meaning the option is now free at the five largest US coffee chains.
  • Candy giant Mars is partnering with the world’s biggest dairy exporter to help reduce greenhouse gas emissions on New Zealand farms.
  • Thailand’s feed industry is pitching to buy about $2.8 billion worth of agricultural commodities annually from the US instead of other suppliers, as the Asian nation seeks to narrow its $35 billion trade surplus and head off possible tariffs on its own exports.
  • Some major shipping lines including Hapag-Lloyd and Louis Dreyfus Armateurs are calling on the International Maritime Organization to avoid backing crop-based biofuels as the industry pushes to decarbonize.

On the Bloomberg Terminal

  • Palm oil’s use in food may rise by a low single-digit percentage as demand from China and Europe tapers on demographics, according to Bloomberg Intelligence.
  • Agricultural carbon markets are underappreciated and underdeveloped but “carbon farming” might change that, BloombergNEF writes.
  • Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
  • Use the AHOY function to track global commodities trade flows.
  • See DSET CHOKE for a dataset to monitor shipping chokepoints. 
  • For freight dashboards, see BI RAIL, BI TRCK and BI SHIP and BI 3PLS
  • Click HERE for automated stories about supply chains.
  • On the Bloomberg Terminal, type NH FWV for FreightWaves content.
  • See BNEF for BloombergNEF’s analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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