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Russian sanctions affect Belgian farmers

12:06 08/08/2014

Two organisation representing the Belgian agriculture industry – the Farmers’ Union and the General Union of Farmers (ABS) – have said that the ban on imports of a number of foodstuffs from the European Union will lead to economic damage and job losses for local farmers and fruit growers.

The ban, announced by the Russian prime minister Dmitri Medvedev yesterday, covers exports of beef, pork, poultry, milk, cheese, fruit and vegetables from the EU, Norway, the US, Canada and Australia. The ban was described by the EU Commission as “politically motivated”.

The main products affected for Belgium are pears, pig meat and apples. Half of Belgium’s pear crop goes to Russia, with a worth of some €100 million. Pear growing is concentrated in the Haspengouw and Hageland areas of Flemish Brabant and Limburg  provinces. 

The next most important sector is pork; Belgium exports about 30,000 tonnes for a value of €50 million. Apples, in third place, are worth about €43 million in export income. Russia takes between 15 and 20% of Belgium’s annual apple crop, and is the biggest customer outside of the EU.

In total, Belgium exports some €230 million worth of farm produce to Russia. Tomatoes account for about €22 million, while milk powder and cheese are worth about €10 million.

“Major economic consequences”

The measures, according to the Farmers’ Union, “will weigh on the whole sector. In the long term, this will lead unavoidably to reduced production and ultimately to job losses. We call on all governments concerned, both national and European, to take the necessary steps to try to lessen the impact.” 

In the meantime, the pear harvest is due to start in about a week. Growers will be able to stock their harvest for a time, but exports of the new crop would normally begin in about October, and warehousing for too long a period, ABS said, will lead to a loss of quality. “It’s not clear how easy it will be to find new export markets, but there’s no doubt there will be major economic consequences for the sector,” an ABS spokesperson said.

One note of optimism came from the Belgian Association of Horticultual Co-operatives (VBT), which groups together the main auction markets. “In August and September, there is usually very little pear exports towards Russia,” commented VBT secretary-general Philippe Appeltans. “We are hoping for a rapid solution to the conflict in Eastern Ukraine, so that this sort of sabre-rattling is no longer necessary.” 

Europe’s growers met this week in Istanbul, where it became clear, said Appeltans, that some countries are looking at a reduced harvest. “Turkey’s pear crop is down a whole 25%, so it’s possible for us to focus on new markets. Since the Russian ban on Polish imports, domestic demand for pears has gone up fourfold. They’re completely sold out.”

 

photo courtesy vakantie.she.be

Written by Alan Hope