Supply Lines
Angry farmers are back on the streets of Europe.Protests earlier this year largely concentrated on the impact of climate policies, red tape

Angry farmers are back on the streets of Europe.

Protests earlier this year largely concentrated on the impact of climate policies, red tape and the influx of Ukrainian goods. Now, French and Polish growers are bemoaning a potential EU free trade deal with Latin America, while their British counterparts are up in arms over a new inheritance tax.

Here’s a summary of why they’re upset:

EU-Mercosur Deal

The deal between the EU and Latin America’s Mercosur bloc has been a quarter of a century in the making and is getting near the finishing line. But farmers in places like France fear cheaper imports and want guarantees that their Latin American rivals comply with EU health and environmental standards, including on antibiotics and pesticides.

France is trying to form a "veto minority" with other EU states to block the deal and could be joined by Poland, as agriculture ministers from both nations looked to compare their lists of objections to the deal. Polish farmers gathered in front of parliament this week to express their disagreement with the deal and threatened to stage protests across the country. 

Ukraine Trade

Warsaw has a history of shielding its agricultural industry from foreign competition. The previous government last year imposed a unilateral ban on grain imports from Ukraine on concern the supplies were hurting its own market, sparking a diplomatic spat with Kyiv. Poland, together with Hungary and Slovakia, continues to ban the import of the goods while allowing transit to third countries. 

Ukraine’s new agriculture minister, Vitaliy Koval, came to Brussels this week seeking help for his country to export its products after 1,000 days of Russia’s invasion. He also met with agriculture ministers from neighboring nations and urged the EU to support Ukrainian farmers rather than treating them as a threat. 

Tax Raid

Thousands of British farmers descended on central London this week to oppose the new Labour government's decision to impose inheritance tax on farms for the first time in over three decades. 

The protesters included celebrity supporters like TV presenter and farm owner Jeremy Clarkson and billionaire James Dyson. They argue that the 20% levy on farming land worth over £1 million will "cripple" businesses and prevent them from passing them down to their children.

A farmer drives a tractor over Westminster Bridge during a protest over inheritance tax changes, in London, UK, on Tuesday, Nov. 19, 2024. Photographer: Chris J. Ratcliffe/Bloomberg

The backlash has become a major political headache for the government, which continues to defend its decision. It says the change will only affect about 500 farms per year and will close a loophole where wealthy individuals buy up agricultural land to avoid inheritance tax.

Listen to this podcast where National Farmers’ Union Vice President Rachel Hallos says growers feel “betrayed” by the government.

Agnieszka de Sousa in London 

Charted Territory

Super wheat | The race to boost wheat yields with drought-resistant varieties is heating up. Seed company Corteva is unveiling what it calls a “revolutionary” development in wheat: a non-genetically modified seed that could boost yields of the amber grain by 10% while using the same amount of land and resources. It aims to beat out rivals by getting its hybrid wheat into the North American market as early as 2027. The company is seeking to do for wheat what its Pioneer unit and other seed companies did about a century ago for hybrid corn, which refers to cross breeding of the grain. Demand for such corn exploded during the severe drought conditions of the 1930s, and yields for the crop have far outpaced those for wheat. (Read the full story here.) 

Today’s Must Reads

  • Six powerful storms late in the season that ravaged crops and drenched vast areas of the Philippines have put the nation on track for record rice imports and raised concerns over elevated food inflation.
  • Indiana’s attorney general is asking Tyson Foods about its labor recruiting as part of a broader investigation into illegal immigration, signaling a tougher environment for an industry that relies heavily on foreign labor. 
  • JBS, the world’s largest meat producer, plans to invest about a.5 billion to build its first meatpacking facilities in Africa.
  • Starbucks is exploring options for its Chinese operations including the possibility of selling a stake in the business, according to people with knowledge of the matter.
  • Traders betting on crop futures aren’t to blame for driving up food prices, and speculation can rather help dampen market fluctuations, the Swiss government said. 
  • China’s Luckin Coffee agreed to buy an equivalent of 4 million bags of beans from the world’s top exporter Brazil between 2025 and 2029, signaling continued demand from one of the fastest growing markets.

On the Bloomberg Terminal

  • President-elect Donald Trump faces limits on his ability to make farmers whole in a trade war under farm legislation Congress is considering, Bloomberg Government reports.
  • China will expand the scope of its probe on dairy products imported from the EU, after receiving a request from the applicant of the investigation to do so, Bloomberg News reported, citing the country’s Ministry of Commerce.
  • 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.

Like Supply Lines?

Don’t keep it to yourself. Colleagues and friends can sign up here. We also publish the Economics Daily, a briefing on the latest in global economics.

For even more: Follow @economics on Twitter and subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and gain expert analysis from exclusive subscriber-only newsletters.

How are we doing? We want to hear what you think about this newsletter. Let our trade tsar know.