In the past year, food prices in Europe have experienced a significant increase of up to a third, leading experts to believe that this upward trend is unlikely to reverse anytime soon. Pavel Březina, Chairman of the Board of the COOP retail network, points out that the future does not bode well for low food prices, particularly due to the mounting costs associated with changing agricultural practices and increasing demand.

Agricultural practices are undergoing transformation as the European Commission introduces new plans and regulations aimed at promoting health and sustainability in the food industry. These measures require food companies to make tangible changes to their established practices, such as altering food composition to align with healthier nutrition, reducing environmental impact, and adapting marketing strategies. However, implementing these changes comes at a cost.

Miroslav Koberna of the Food Chamber explains that the current interpretation of these plans suggests that prices should reflect the fair inclusion of ecological impacts of production. This would mean accounting for factors such as methane emissions from cows, the need for fertilizers, and the cost of mitigating ecological damage. The introduction of environmental taxes may become a reality, which raises concerns among agricultural producers, including large meat processing plants.

Pavel Březina emphasizes that the pressure to reduce the ecological footprint will inevitably lead to increased food prices. With rising demand, any reduction in food production within Europe would likely result in higher imports, further intensifying the price pressure.

Specific sectors, such as poultry farming, express concern over stricter breeding conditions imposed by the new regulations. Zdeněk Mlázovský of Proagro Nymburk predicts that if these conditions are implemented, the prices of eggs and poultry meat will become exorbitantly high.

While the path toward sustainability in Europe’s food industry may yield numerous benefits, it is evident that consumers will bear the cost. As producers grapple with the need to comply with new regulations and invest in more sustainable practices, the resulting expenses will be reflected in the prices of food products.

As the industry adapts to the changing landscape, it is crucial for policymakers and stakeholders to strike a balance between sustainability objectives and maintaining affordability and accessibility for consumers. Finding innovative solutions, supporting farmers in the transition, and exploring alternative approaches to reduce costs will be essential to navigate the complex challenge of sustainable food production while ensuring fair pricing for consumers.

Article by Prague Forum