Agricultural organization warns that cuts to the CAP would increase the shopping basket by up to 500 euros

Madrid – The Coordinator of Organizations of Farmers and Ranchers (COAG) has warned that the proposed 18% cut in direct payments from the CAP by the European Commission for the budget period 2028-2034 would have a “devastating” impact both on the viability of small and medium-sized agricultural operations and on the wallets of millions of European families, according to a statement.

Specifically, the projected budget adjustment starting in 2028 implies a direct loss of 877.5 million euros in agricultural incomes. To compensate for this deficit, producers would be forced to pass on a 2.32% increase in prices at the source, according to calculations made by COAG’s technical services.

However, due to the actual functioning of the food chain, where they point out that increases are “quickly passed on and decreases are barely perceived,” this adjustment at the source multiplies as it moves towards the final consumer. Furthermore, the deregulation of markets, which is associated with the CAP reform, would further impact speculation on food prices.

Thus, according to the technical analysis conducted by COAG, the final increase in the retail price would range from 6.5% in a conservative scenario (when industry and distribution absorb 30% of the impact) to 9.3% in a pessimistic scenario (when the entire increase is passed on to the final consumer).

In this way, applying the projected percentage increases (6.5% and 9.3%) to the average annual expenditure of 5,391 euros on food and non-alcoholic beverages in 2024 would result in a direct impact on the consumer’s wallet of more than 350 euros per year per household in the most conservative scenario, but this would increase to more than 501 euros per year per household in the pessimistic scenario.

Increase of between 30 and 42 euros per month

In monthly terms, the increase would range from 29.17 euros to 41.75 euros. COAG points out that this increase would have a particularly severe impact on households with lower economic capacity, which dedicate a larger proportion of their income to essential expenses such as housing and supplies. Additionally, it could accelerate the substitution of fresh and quality foods with cheaper and less healthy options, compromising the Mediterranean diet.

In this context, more than 10,000 farmers and ranchers from across Europe are expected to take to the streets of Brussels on December 18, in a large demonstration against the “cut” to the agricultural budget, the proposed CAP reform, free trade agreements with third countries (such as Morocco or Mercosur), and bureaucratic suffocation.

COAG has confirmed that it will be present with a large delegation of farmers and ranchers from different autonomous communities, led by its Secretary General, Miguel Padilla, who will actively join the mobilization promoted by COPA-Cogeca.

“The countryside cannot continue to be the adjustment variable of the EU’s Excel table. Such a cut not only suffocates farmers and ranchers but also hits consumers hard and jeopardizes access to quality food at reasonable prices. It is insane to prioritize tanks over potatoes,” Padilla emphasized. (November 24)