The EU is in a panic to protect farmers. It set aside 500 million euros for them to cope with the increase in fertilizer prices. We have a margin limit. But the measure is late and the spring crops and summer crops have passed, the farmers say
The European Union is preparing an emergency aid package of 500 million euros to support the agricultural sector due to the sharp increase in the prices of artificial fertilizers and energy, caused by the disruptions in world markets after the closure of the Strait of Hormuz. What is our government doing to preserve domestic agricultural production?
Farmers say that the May 31 margin restrictions on artificial fertilizers were an overdue measure, and that the so-called green oil is being given in token amounts. Therefore, they say, there is reduced production, but also reduced yields as a result of saving fertilizers.
Fertilizers and oil are more expensive by 50 percent
Gjorgi Karakashev, president of the National Agricultural Network, explains that compared to last year, the price of artificial fertilizers has increased by 50 percent. The price of fuel has also increased by 50 percent. These two elements alone account for an average of 50 percent in the production price of agricultural products.
– Unfortunately, the measure to limit the margins was adopted after we already had to use fertilizer. Farmers are not powerful enough to use optimal amounts, they used minimal amounts of fertilizer, and this led to a significant reduction in yields. That’s why even now we don’t have enough domestic vegetables. And most of the imported food is produced in the markets. And “green oil” is not even worth mentioning. The intended amounts are symbolic, as much as to say that the state is helping farmers. Examples in the environment speak of significant help. For example, Croatia waived the oil excise tax for farmers. Well, that is already a significant amount – says Karakashev in a statement for “Sloboden Pechat”.
Pesticides and labor also became more expensive
In addition to the increase in the prices of fertilizers and oil, there is an increase in the price of pesticides from 10 to 20 percent, as well as labor. Imported goods, but also seasonal peaks when certain products suddenly become expensive, push prices down. For example, cherries are sold wholesale for 30 to 50 denars per kilogram.
– Why is the low price of cherries not being commented on now? Rod is there, but who will pick it? The pickers demand a daily wage of 2,500 denars, and they barely pick 40 kilograms each. Where is the math now? – asks a fruit grower on social networks.
This year, there are about 100 million euros in the financial aid program for farmers, but farmers say that most of the money will be spent on backlogged subsidies.
There were margins of 70 percent!
In response to the drastic increase in the prices of artificial fertilizers, the Government made a decision with which, as of May 31, the highest gross profit margin of inorganic fertilizers is five percent each in wholesale and retail trade. The margin for organic fertilizers, organo-mineral fertilizers and biostimulants in the wholesale trade is up to 10 percent and even more in the retail trade. The Minister of Agriculture Cvetan Tripunovski, promoting the measure, said that margins of 70 percent were recorded!
The effect of this measure will be felt during autumn and winter sowing. The package of the European Union of 500 million euros arrived exactly after the warning from the European Commission that without a quick reaction there is a risk that part of the farmers will reduce or completely give up the autumn and winter sowing.
According to Minister Tripunovski, a serious amount has been allocated for green cards for oil. He said that already in 2025 the amount has increased by 100 percent compared to 2024, that is, it amounted to 500 million denars.
