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LV Farmers' Parliament evaluates 2021 in agriculture
Why is food getting more expensive?
By now, every resident of our country has noticed the rapid rise in food prices. The rapid rise in prices for electricity, diesel fuel, natural gas, and mineral fertilizers has “shot” food prices into the air. Farmers are concerned that food is becoming more expensive and therefore less accessible to the Latvian public. We do not want to end up in a situation where, due to international political decisions and market fluctuations, rye bread, for example, remains available only to the rich. This can be fought at the national level by introducing a logical “green course” and co-financing agricultural policy at least at the level of neighboring countries.
Compared to the rest of Europe, Latvia has one of the highest VAT rates on food, which makes it more expensive. 231% of Latvian residents are at risk of poverty and spend a relatively large amount on food. Throughout the year, discussions took place about reducing VAT on food, and, aware of the large increase in production prices, it was very important to apply the 51% VAT rate to a wider food group – fresh meat, fresh fish, eggs and dairy products. Unfortunately, politicians did not agree on such a step, and therefore we will pay more for food next year as well.
The shortage of labor in rural areas is undermining our competitiveness.
There is still a shortage of workers in the Latvian countryside, as tons of fruits, berries and vegetables remained unharvested this autumn. Unlike other EU countries, Latvia is putting all possible obstacles in the way of employing migrant workers in agriculture and other sectors, and it has not been possible to reach an agreement with the Ministry of Finance on facilitating the employment of seasonal workers in crop production and livestock farming. The new conditions stipulate that from December 15, employees in the private sector will only be allowed to work with a Covid-19 certificate, which further worsens the situation. Unfortunately, the government does not understand that a cow is not a factory machine that can be stopped for a week or two until Covid-19 ends.
The European Union's "Green Deal" and "greenwashing"
For two years now, the political arena has been dominated by the issue of the Green Deal, whose goals are extremely ambitious. It is already clear that we will not achieve these goals. At best, we will move towards them. The green rate will not be painful only for manufacturers!!! The implementation of this strategy will cost society as a whole – according to calculations by the University of Kiel, the price increase as a result of the green course could be significant. For beef +58%, for pork +48%, for raw milk +36%. The price increase for crops would be +15% for fruits and vegetables, +18% for oilseeds and +12.5% for cereals.
It is encouraging that we are increasingly hearing from politicians that we cannot remain under attack within the framework of the Green Deal. That we must stand up with a strong backbone in the corridors of Europe against several absurdities that they want to impose on us. The most frightening trend of the Green Deal is that it is becoming less and less a real and implementable strategy, but rather a riding horse that various Kangaroos and “eco-hysterics” are rushing to use. The reason is simple – to divide and polarize society for selfish purposes – to earn sponsors’ money, develop their own business or advance their careers in politics.
It is important that in moments when political and green business passions cross the boundaries of reason and morality, our producers must stand up for themselves. Farmers showed their readiness to fight this summer with lightning speed – within 24 hours we received confirmation that more than 400 tractors were ready to go to the protest.
Common agricultural policy
Many have described the CAP as a roller coaster, where the movement is up and down. We would compare it more to a linear journey down a hill. If initially optimism was high - an increase in support, the introduction of a green course, clear instructions from the European Commission on how member states should shape their policies.
The end result is sad – a big outcry, a divided society, politically money distributed to whoever spoke out the most in the press. There is no national plan for what we want to achieve, no sectoral development strategy, and the most painful thing – the long-promised increase in payments is fading away – several sectors will experience real and harsh payment cuts. The move towards climate neutrality will also remain just an idea, because real and implementable measures will not be supported enough.
Harvest
The climate brings its surprises every year, but there are still no technologies that would allow farmers to fully adapt to changing climatic conditions. This year, uncharacteristic weather conditions - the heat in the middle of summer significantly affected the yield and quality of not only cereals, rapeseed and legumes, but also vegetables. Cereals did not ripen, but withered prematurely, the loss of yield is estimated at 30 %. In turn, prolonged rain in August and September delayed harvesting and sowing. The yield of carrots, cabbage and table beets was a third less than last year. Potatoes have also suffered greatly, because the rainy spring delayed potato planting, while the prolonged period of heat and drought did not allow them to grow, and in many places the shoots were eaten by Colorado beetles. There will not be enough local vegetables until the next harvest.
Pride of the year
Our Latvian People, who work purposefully and with a conscience. This year, we are especially happy for Juris Lazdiņš, whose achievements have been appreciated at the national level, receiving the Cabinet of Ministers' certificate of appreciation "For contribution to the development of the agricultural sector". We are proud of breeder Vija Strazdiņš, who received an award in the nomination "Lifetime contribution to agriculture" in the "Sower" competition, and our member Kaspars Boktas from SIA "Forest fox", who received an award in the nomination "Organic farming" in the "Sower" competition. We are proud of every one of our members, who, despite the challenges, wake up every morning and go about their daily work with renewed vigor - providing food so that we in Latvia have quality, good food and never run out of it!
Current events of the year
Farmers go on air and address the public to explain in a clear way what they do every day, countering blatant lies and misinformation. In the heat of summer, farmers were ready to participate in large-scale tractor protests against hate speech!
Work of the year
CAP Strategic Plan – Over the course of two years, the ZSA participated in countless meetings and working groups, where it presented its proposals. Thanks to everyone who worked, but the lack of a clear political position and compromise at the end of the compromise has resulted in a poor result.
Annual goal
We will have to work hard to complete the tasks that were postponed until “tomorrow, when COVID-19 ends.” In addition, decisions will have to be made quickly and with high quality.
Annual assessment
A study by the European Food Safety Authority (EFSA) concluded that agricultural products produced in Latvia are the safest and cleanest when evaluating the amount of pesticide residues in products.
Annual cooperation
ZSA members have established two new beef cattle cooperatives – “Latvijas liellops” and “Green Beef”. May they become even stronger!
Annual activity
Both in winter and summer, we take care of the place we live in, mowing roadsides, cleaning and repairing roads. We take care of the environment in which we live. We preserve tree and shrub strips, not “trimming” roadsides until August, but leaving cornflowers and other meadow flowers. ZSA members are also politically active, as several of them have been elected to local governments.
Annual increase
The consequences of COVID-19 – unpleasantly surprising inflation. A significant increase in the cost of resources and raw materials, resulting in an increase in the prices of goods and services.