Floods, heat waves, and frost in the spring have wreaked havoc on several harvests this year. As a result, the European Union (EU) recently announced that it will increase aid to fruit and vegetable producers, as well as the viticulture industry, which have been hit by the severe weather conditions.
Increased Aid for the Fruit and Vegetable Sector
According to European Agriculture Commissioner Janusz Wojciechowski, the Covid-19 pandemic has added to the adverse weather conditions by putting stress on the agriculture industry in 2020. He stressed, “These much-needed support measures will provide relief to EU producers during this difficult phase, in addition to the support already provided in 2020 and extended into 2021.”
The EU's budgetary contribution to viticulture, which includes all of the initiatives outlined in national aid programs, will increase from 70% to 80%. Despite the lower revenue in 2021, the union will reward fruit and vegetable producers with at least 85% of last year's production levels. The allocation of the compensatory amounts is when the production is at least 35% lower than the previous year. The compensatory funds are set aside for issues such as natural disasters, climatic events, plant diseases, or parasitic infestations, and the aid is valid until October 15th, 2022. The aid is in addition to the extraordinary measures taken by the European Commission in July 2020 to assist the fruit, vegetable, and viticulture sectors in dealing with the containment restrictions imposed as a result of the Covid-19 outbreak, which resulted in economic losses for growers.
The Pandemic Disrupts Supply Chains
So far, the supply of fresh fruits and vegetables in Europe has remained unaffected. However, the Covid-19 pandemic has destabilized the European fruit and vegetable sector, putting long-term food supply in jeopardy. Growers are currently dealing with the increase in cost, which is estimated to be around €500 million per month. In addition to the cost increase, the pandemic has deprived growers of major access to the food industry, which accounts for 25 to 30% of market supply. As the pandemic progresses, it will place greater strain on the fruit and vegetable industry, eventually jeopardizing the industry's financial sustainability.
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