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100,000 Italian farms at risk of closure due to EU sanctions

  • By Al Mayadeen Net
  • Source: Agencies
  • 27 Mar 2022 08:32
  • 3 Shares
2 Min Read

Data shows that Italian agro-producers are unable to keep up with rising production costs in light of the war in Ukraine.

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  • Prices for nearly every raw material used by agro-producers have risen.
    Prices for nearly every raw material used by agro-producers have risen.

Major farming association Coldiretti said in a report this week that almost 100,000 Italian farms are on the verge of closing due to skyrocketing production costs caused by the war in Ukraine.

Growing production costs far outweigh what farmers and breeders are paid for their products, which range from milk to fruit, meat, and vegetables, the report added.

Furthermore, Coldiretti detailed, citing data from the Italian agricultural research organization Crea, that more than one farm in ten (11%) is on the verge of closure, and roughly one-third of the nation's total (30%) is working in conditions of negative profits.

The group observes that prices for nearly every raw material used by agro-producers have risen, including energy, diesel, fertilizers, animal feed, and seeds.

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Another issue is the discrepancy between the final price of products and what farmers receive after transportation and processing. 

Only 6 to 15 cents of every euro spent by consumers on food products goes to farmers. Bread, for example, is now nearly 13 times the price of wheat, according to Coldiretti.

See more: The global wheat supply crisis

The association offers no solutions to the problem but paints a bleak picture in which farm closures reduce crop yields and force the country to rely even more on agricultural imports.

It is worth mentioning that Italy already imports 64% of its grain, as well as 49% of its beef and 38% of its pork. 

Italy also imports more than half of the corn crops and one-third of the soy crops needed for animal nutrition, as analysts predict that these figures will soon skyrocket.

  • EU
  • farms
  • Agriculture
  • Ukraine
  • Price Hikes
  • Italian agro-producers
  • Itlay
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