AGP Executive Report

Irrigation Upgrade in Moldova: About 1,900 hectares in Briceni district will get access to a modernized irrigation network after three storage reservoirs and pumping stations are rehabilitated and interconnected under the World Bank’s AGGRI project, with new pipelines and distribution networks to supply water from the Prut and Vilia rivers. Moldova Tax Overhaul Draft: Moldova has opened public consultation on its 2027 fiscal policy, aiming for a simpler, more competitive tax system, including a 0% rate on reinvested profit, faster VAT refunds, and lower personal income tax for lower earners. Moldova-Bulgaria Dealmaking: Moldova and Bulgaria plan a joint economic forum in Chisinau next autumn focused on agri-food, IT, and energy, with MEDEF also set to bring new partnerships later in June. EU Budget Negotiations: The Cypriot EU presidency proposes a “negotiating box” for the 2028-2034 budget, including a 2% smaller overall size and slightly more support for farmers, while shifting resources toward competitiveness and defence. Insect Protein Scaling in France: Innovafeed says it has scaled its black soldier fly ingredient production to industrial levels at its Nesle facility, backed by €51m, while cutting R&D roles as it moves from research to commercial output. Organic Berries Trade Update: Ukraine’s organic berry exports rose 8.5% in value in 2025 despite lower volume, with strong EU demand for raspberries and especially blueberries. EU Climate Risk Guidance: WHO Europe released updated guidance for heat-health action plans as El Niño conditions are expected to intensify, warning that heat has already caused over 200,000 deaths across Europe in recent years. Foot-and-Mouth Surveillance Gap: South Africa’s ongoing foot-and-mouth outbreaks highlight the lack of a mandatory nationwide tracing system, worsening impacts on the beef sector and exports. EU Energy Policy Signal: The EU budget talks and carbon-cost measures continue to shape farm and household cost pressures across Europe.

EU Food Safety Simplification: Cyprus is pushing for a deal on the EU’s food and feed safety “simplification” package, with ambassadors set to decide Friday; the main fights are over pesticide residue limits in imports (MRLs) and how long approvals last for substances. Chlorpyrifos Scrutiny: A new review says nearly 300 studies link chlorpyrifos to multi-organ damage and chronic disease, as regulators reassess whether the insecticide should stay on crops like apples and strawberries. GMO Enforcement in Latvia: Latvia’s Plant Protection Service found unauthorised GMO “Norfolk Purple” tomato seedlings at a collector’s home, ordered destruction, and will keep monitoring. Farm Input Pressure: UK trials work highlights how higher nitrogen costs make soil pH and nutrient testing more critical for farmers to avoid wasting expensive fertiliser. Labour Housing in UK Agriculture: A North Yorkshire potato farm won approval to keep three static caravans for seasonal workers after failing to find adequate local accommodation. EU Enlargement Track: Commissioner Marta Kos says accession talks can accelerate now, with reforms and unanimous sign-offs still the key hurdle for Balkan states and Ukraine.

Fish Welfare Row: European aquaculture producers (FEAP) hit back at the European Commission’s new fish welfare report, arguing it overlooks practical farm realities and could push production outside the EU. Livestock & Rural Demographics: Ireland’s EESC president Séamus Boland warned rural depopulation is accelerating, calling for better long-term planning and housing so people can stay in rural areas. Dairy Economics: Rabobank says growing milk supply no longer pays for Irish farmers, adding pressure as margins tighten. Pig Supply Shock: Sofina Foods will not renew a small number of Northern Ireland pig supply contracts, citing downward market pressure linked to African swine fever impacts and shifting trade flows. Innovation in Farming: An Irish MEP said innovation is key to tackling major Irish agriculture challenges, highlighting research on emissions reduction and water quality. Wildlife & Land Use: Rare footage from Poland shows wolves hunting European bison, adding new detail to conservation and predator-prey dynamics.

Fertiliser Shock in the UK: The NFU says the Iran conflict is again squeezing farmers via higher fertiliser and shipping disruption, urging a “trigger point” for government support and warning CBAM could push costs further. Livestock Health Policy: England plans to vaccinate cattle against bovine TB from 2030, aiming for TB-free status by 2038, but it hinges on EU rules that currently ban vaccination exports. Agri-Business & Animal Health: Ceva Animal Health is buying Spain’s Aquilón to strengthen swine intestinal disease prevention and cut antibiotic dependence. Food & Trade Signals: EU fruit and vegetable consumption remains below WHO targets, while EU food safety leaders defend bloc standards amid ongoing scrutiny. Farming Community & Nature: Open Farm Sunday highlights water-meadow farming that protects wildlife and keeps traditional haymaking alive. Energy Inputs Pressure: With clean energy grid connections improving in the UK, the wider backdrop remains volatility in energy and input markets that directly affects farm costs.

EU Environment & Defence: Commissioner Jessika Roswall says water and climate risks should be treated as security issues, pointing to peatland restoration and re-flooding along eastern borders as a dual climate-and-defence tool. West Bank Settler Violence Sanctions: The UK and allies (including France, Norway, Australia, Canada, New Zealand) announced new sanctions targeting entities and individuals they say finance and enable extremist settler violence, while the UK stopped short of a full trade ban. Armenia’s EU Pivot: Armenia’s election outcome is widely read as a rebuke to Moscow and a mandate to keep moving toward the EU, with analysts flagging the next phase for peace talks and regional alignment. Cocoa Volatility: Cocoa prices slipped after forecasts pointed to drier West Africa conditions, with inventories high and funds holding large net shorts—raising the risk of sharp swings. Farm Inputs & Policy Watch: EU fertilizer tariffs are reported to be suspended to cut input costs, as ministers push for action amid soaring global fertilizer prices. Agrifood Trade & Supply Chains: Colombia passed a cattle traceability law aimed at keeping beef linked to deforestation out of supply chains, aligning with EU deforestation rules. Climate Risk for Farming: A Michigan study highlights how farmers and residents can reduce harmful algal blooms by limiting nutrient runoff—an issue that resonates across Europe’s water-stressed farming regions.

EU gene-editing rules for wine: The EU is set to vote on 17 June on easing restrictions for gene-edited grapevines, but wine groups warn patent disputes and outdated rules could still block growers from bringing new varieties to market. Fertiliser shock at G7: G7 agriculture ministers met as fertilizer prices spiked amid Middle East disruption, with ministers stressing strategic supply of key inputs like urea for farmers and next season. SAF push in France: Technip Energies, Airbus, Safran and Tereos are teaming up on a large Alcohol-to-Jet sustainable aviation fuel project at Dunkirk, targeting about 160,000 tonnes a year. Organic waste to compost in Cyprus: Athienou is developing a resilience hub to turn pruning residues and livestock manure into affordable compost for local farms under Horizon Europe’s NURISH project. Beekeeping biotech: Research highlights a gene-silencing biopesticide approach targeting the Varroa mite while aiming to keep honey bees safe. Aquaculture debate: New analysis flags that Europe’s farmed seafood growth still shifts environmental pressure from sea to land via aquafeed inputs.

Fertiliser Security at G7: G7 agriculture ministers met in France to assess fertilizer supply risk after the Strait of Hormuz closure, warning urea exports are hit and nitrogen prices have jumped sharply in Europe. Climate & Food Imports: UK research warns heat stress and El Niño could disrupt global supply chains, putting UK food import security at risk. Renewables & Farm Co-benefits: A German study finds solar farms on rewetted peatland can boost biodiversity while locking away carbon, offering a new income path for landowners. Biofuel Sustainability: EU renewable ethanol hit a new greenhouse-gas reduction record, with audited figures stressing co-products for food and feed. Animal Health & Biosecurity: UK equine flu outbreaks keep rising, with stricter show checks on passports and vaccination compliance. Agrifood Trade & Access: Moldova hosted a Moldova–EU investment conference with over €1bn in announced partnerships, aiming to speed integration and exports. Cocoa Volatility: Cocoa prices tick up as West Africa weather damages buds and trees, with El Niño risks adding pressure. EU Enlargement (Agri Angle): Serbia says it could be technically ready to open EU accession Cluster 5 on agriculture by end-June.

Climate & Food Security: A new study warns El Niño heat stress is already disrupting farm work in poorer countries that supply Britain with staples like rice, coffee, tea and chocolate, with 13% of UK food imports tied to these regions and huge lost working hours; UN scientists say El Niño risk is rising, threatening higher food prices. Input Costs & Fertiliser Supply: UN’s IFAD chief warns the Iran war’s Strait of Hormuz disruption is feeding through to fertiliser and fuel costs, pushing farmers to delay planting and raising the odds of a food crisis by year-end. EU Policy & Farming: The EU is pushing a clearer link between farm subsidies and emissions cuts, as debate grows over how CAP-style support should drive climate outcomes. EU-India Agri-Food Links: EU “Team Europe” ambassadors are set to visit Assam (June 8-9) to deepen cooperation, including tea and agri-food processing value chains. Animal & Biosecurity Rules: Czech Republic introduces mandatory central dog registration from July 1, with vets handling entries and fines for non-compliance.

EU-Armenia Trade Pivot: Armenia’s parliamentary election is being watched in Brussels and Moscow as Prime Minister Nikol Pashinyan seeks a stronger mandate to keep moving toward the EU while Russia tightens pressure via export restrictions. EU Support for Agriculture Exports: The EU is preparing/pledging major support for Armenia amid Russian trade limits, including tariff-free access for agricultural exports and emergency funding aimed at keeping fruit, vegetables and floriculture moving. EU Investment Linkages: A “Team Europe” delegation is set to visit India’s Assam on June 8-9 to back value chains in tea and agri-food processing, plus flavours/fragrances and broader industrial partnerships. UK Farm Inputs & Health: In Britain, Public Health Wales warns North Wales visitors to cover up due to reported tick surges, with implications for livestock and outdoor workers. Farm Sector Costs & Power: In India, farmers face reduced electricity supply and insurance payment delays, adding pressure to already strained rural livelihoods.

EU Trade & Food Flows: Morocco widened its agro-food surplus with the EU in early 2026, with EU imports down only 2% to €800m while EU exports fell 18% to €561m, driven by weaker cereals, beef and soybean oil shipments. Global Food Prices: FAO data shows world food prices broadly steady in May, but cereals rose—world wheat up 3.4% on the month and 7.8% year-on-year—pointing to weather and energy/input risks. Water Stress in the Mediterranean: Cyprus launched “Larnaca -26” to cut household water use by 26 liters per person daily by September, as drought pressure and summer demand keep reservoir levels under strain. Energy Costs Hitting Farms: Scotland’s renewables sector warned UK transmission charging is “not fit for purpose,” with forecasts suggesting higher network bills in the north—an indirect pressure on wider rural energy costs. Labour Mobility Watch: The EU Labour Authority highlighted fair mobility as a core challenge amid shortages, undeclared work and migrant exploitation, with coordinated enforcement increasingly targeting problem areas.

CAP Finance Boost in Croatia: Croatia has launched a €47m package of CAP-linked loans and credits for farmers, food processors and rural areas, including principal write-offs of up to 50%—with €27m earmarked for primary production in sectors like livestock, beekeeping, fruit and vegetables. Extreme Weather Hits Italian Crops: Violent hailstorms and heavy rain across northern and central Italy have damaged cereals, vegetables and fruit, with Coldiretti warning losses could run into the millions and some vineyards losing up to 90% of bunches. Dairy Pressure in Britain: Britain’s milking herd fell to 1.59m head in April (down 2% year-on-year) and the total dairy herd dropped to 2.46m, as productivity rises but young stock numbers keep shrinking. Water Resilience in Spain: Veolia says it supplied over 43m cubic metres of regenerated water in Valencia over the past year, supporting municipalities, industry and natural areas during drought risk. Farm Debt Relief in Croatia: Croatia is also rolling out farm loans under its CAP framework with up to 50% debt forgiveness, aiming to ease volatility for producers.

Land Use Pressure in Malta: AFP reports Maltese farmer Annalisa Schembri is fighting plans to pave over wheat fields as a construction boom threatens agricultural and green spaces, with UNESCO concerns also raised. Beef Market Outlook: Rabobank says tight global beef supply should keep prices firm through 2026, with production down in key regions including Brazil, the US and China. Specialist Horticulture Fuel Support (Ireland): Ireland opened a Fuel Support Scheme for Specialist Horticulture, offering a once-off payment to help growers absorb higher energy costs. Animal Welfare Push in Denmark: Denmark’s “pig election” campaign helped drive immediate, systemic changes to intensive pig farming policy after a coalition victory. EU Enlargement Focus (Western Balkans): EU leaders meet in Montenegro to push accession momentum, framing it as a security and economic hedge against Russia and China. Arable & Rural Community Events (UK): Open Farm Sunday highlights nature-friendly water meadows management at Laverstock, with public access and farm talks.

EU Agri-Trade & Subsidies: The EU is preparing an over €50m support package for Armenia after Russia’s export restrictions, with extra help aimed at agri-food and flowers. Sanctions & Market Access: A Swedish court cleared the transfer of the detained Baltic cargo ship “Caffa” to Ukraine, in a case tied to alleged grain movement from Russian-occupied areas. Farm Policy & Environment: France lifted bird flu prevention zones as risk levels fell, while the EU continues legal pressure on Ireland over failure to protect carbon-rich bogs. Input Costs & Prices: FAO reports world food prices broadly stable in May, with vegetable oil declines offsetting gains, and cereal prices hitting a 19-month high on fuel and fertiliser costs. Agri-Food Supply Chains: Ireland faces scrutiny over beef standards and UK-linked frozen/pre-packed meat entering schools and hospitals. Nature & Water Investment: EU Nature Investment is reframing water and biodiversity as economic infrastructure. Animal Health & Livestock: Farmers in Portugal are calling for wolf protection measures as livestock losses and conflict persist. Food System Skills: IGD relaunched “Feeding Britain’s Future” to boost careers in food and tackle youth work gaps.

EU trade scrutiny on farming inputs: Ukraine says it’s joining concerns over Ireland’s alumina exports to Russia, after figures rose from €196m (2021) to €318m (2025), with the material flagged as feeding Russia’s military industry. EU legal pressure on land use: The European Court of Justice is set to investigate Ireland’s peat extraction, adding to the pressure on carbon-rich bogs. Farm policy debate in the Balkans: Bulgaria’s Green Transition Forum 6.0 put agriculture competitiveness and EU-wide insurance and climate resilience on the agenda, arguing farmers shouldn’t be pitted against each other. Labour and food supply chain risk: Italy faces fresh scrutiny after killings of migrant farmworkers in Calabria, underlining the gap between enforcement and on-the-ground labour conditions. Water stress and farming impacts: Hungary’s water crisis is blamed partly on past incentives for water-hungry Chinese battery plants, with drought now hitting domestic food production. Agriculture-linked diplomacy: EU accession talks momentum for Ukraine and Moldova continues after Hungary drops vetoes, with agriculture and exports repeatedly cited in the wider integration push.

CAP Talks Kick-off: A key European Parliament agriculture report on June 12 will start a “crucial phase” of Common Agricultural Policy negotiations, with German MEP Norbert Lins’ draft pushing changes like bringing back CRISS, removing further degressivity, and calling to drop the “Do No Significant Harm” rule from CAP conditionality. Armenia Export Support: Armenia approved a EUR12m AFD-backed WAIDA water-and-agriculture programme and also moved to compensate customs duties on fresh fruit, vegetables and flowers exported to the EU, UK and Canada—aiming to keep producers trading despite Russia-linked disruptions. EU vs Ireland Peatlands: The EU sued Ireland over failures to protect carbon-rich bogs, saying local enforcement on smaller sites is insufficient even as larger operators face action. Animal Health Crackdown (Cyprus): Cyprus is continuing foot-and-mouth culling and tightening penalties for animal health law breaches, with fines and prison terms sharply increased. Labour Exploitation in Italy: Italy is reeling after four migrant farm workers were burned alive in Calabria; police arrested suspects and the case spotlights caporalato-style labour abuse in agriculture. EU Agri-Food Trade: The EU’s agri-food trade surplus held steady at €4.4bn in February, with exports down year-on-year but improved versus January. Floating Solar in Germany: Germany’s floating solar on a Bavarian lake produced power while covering just 4.65% of the surface, easing fears of ecosystem damage.

EU trade & farm prices: UK beef imports from Ireland fell to 38,189 tonnes in Q1 2026, while overall imports rose as buyers turned to other suppliers amid tighter EU availability. Farmer pressure: In Northern Ireland, UFU’s Brendan Kelly says beef processors cut prices “too far and too fast,” warning farmers can’t absorb higher costs while supermarket prices stay firm. CAP money in focus: Ireland’s Teagasc and Bord Bia saw CAP-linked income drop year-on-year, with food promotion funding also falling. CAP rules debate: Fine Gael is pushing for a tougher “active farmer” definition in the next CAP, targeting large landowners doing minimal farming activity. Labour exploitation spotlight (Italy): Four migrant farmworkers were burned alive in Calabria; police arrested two Pakistani nationals and the case renews scrutiny of Italy’s caporalato labour system. Market volatility (cocoa): Africa’s cocoa and coffee farmers warn persistent price swings are undermining incomes and investment. Forestry & land use (England): Forestry England consults on a new 168-hectare “Spitfire Forest” near Winchester, aimed at boosting tree cover and resilience. EU policy ripple (fertilisers): The EU is considering fertiliser stockpiling after Middle East shocks, while biofuel expansion could add further pressure on supplies.