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Agrowill Group has submitted offers for European Committee about the future of EU agriculture

2010-05-14

Lithuanian agricultural partnerships’ group “Agrowill Group“, responding to European Commissioner Dacian Ciolo exhortation to present offers about European Union agricultural politics after 2013, submitted its opinion, how to develop European Union and Lithuanian agriculture after EU will stop subsidizing this branch.
Describing why European Union and Lithuania need a common agricultural policy, “Agrowill Group” emphasized that production, made in EU, is more healthy and ecological than in industrial agricultural states (USA, New Zealand and other). EU subsidies for agriculture require great resources, though this guarantees cheaper food for EU states, because subsidies do not let industrial states increasing their production prices.
“Though difficulties arise when EU states’ agriculture is subsidized differently and supports differ several times. Problems also occur in the sphere of supply and demand. EU lacks centralized planning when small farms are directed, what production will be needed. After new members had entered EU, planning of supply and demand was completely misbalanced. Due to this reason it often happens that in some year, there is an over-production in the market, and after 2-3 years – lack of some production”, - Vladas Bagavicius, member of “Agrowill Group” board, expressed his opinion.
Surveying future needs, “Agrowill Group” takes notice of a necessity to equalize subsidies for all EU states. Currently they differ in 300-1000% and so make unequal competitive conditions.
Besides, in the offer, European commissioner‘s attention is called to fertilizers producers‘ protection with customs and antidumping laws – unfortunately, restrictions of fertilizers‘ import in EU increase cost price of agricultural products, because farmers cannot buy cheaper fertilizers not in EU states. Cheaper fertilizers would let bigger export of grain from EU, because their cost price would be even smaller.
In the offer for European commissioner, „Agrowill Group“ has a notion that European Union citizens are expecting to have ecological, healthy and affordable food. That is why it is important for European Union to centralize planning processes, so that supply and demand would not have such great variations in the future and this would not determine changes of prices.



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