AGP Executive Report

German Food Industry: Dairy processor Müller plans to close two factories in Germany, adding to pressure on the country’s food-processing sector. Aquaculture Investment: Kiel-based Oceanloop secured up to €38.5 million to expand its land-based giant-grouper farms, including a new 250-tonne facility near Kiel and a planned larger site in Spain. Farm Machinery: Germany’s DLG is taking the Agritechnica brand to Australia, launching a machinery and agtech trade fair in Melbourne in July 2027. EU Farm Funding: Germany and five other budget-minded countries are pushing for major cuts to the EU’s proposed seven-year budget, while 17 states want to protect funding for farmers and regional development.

EU–UK Food Rules: The UK has renewed warnings that travellers can’t bring EU food back in luggage, with bans on meat, dairy and even sandwiches and fines up to £5,000—an issue that matters for fresh produce and farm exports. Germany–Pakistan GSP Plus: Germany urged Pakistan to implement GSP Plus reforms with measurable results, while both sides discussed trade and investment, including Pakistan’s geographical indication case for basmati rice. EU Energy Costs for Agriculture: The IEA will discuss a proposed release of oil and diesel stocks as diesel prices surge, with the fuel’s impact hitting trucking, agriculture and industry. EU Budget Fight: A new “nego-box” for the EU’s next long-term budget is set to circulate, with Germany among “frugal” states pushing cuts, while agriculture and cohesion supporters resist. Cyber Risk for Renewables: Dutch researchers report thousands of wind and solar systems exposed online across Europe, including Germany—raising concerns for critical infrastructure resilience. Trade & Supply Chains: China called for dialogue with the EU, after France and Germany pushed tougher trade tools over supply-chain concentration risks.

EU Enlargement Strategy: The European Commission unveiled a roadmap for future enlargement, placing Ukraine at the center due to its role in food security and defense. EU Budget Fight: EU leaders warned against a German-led push to cut the bloc’s next budget, with farm and cohesion funding in the spotlight. Cybersecurity for Energy: Dutch researchers say thousands of wind and solar park systems across Europe are exposed online, raising sabotage risks and urging operators to lock down administrative access. Fertiliser Policy: Germany’s Budget 2027 confirms a new fertiliser scheme, a key signal for farm input planning. Climate & Crops: World warnings highlight El Niño’s threat to crop yields and food prices, with knock-on pressure on grain-dependent regions. Food Security Events: Zambia’s Eastern Province ramps up World Food Day preparations, linking nutrition goals to climate-smart farming and biofortified crops. Agritech Research: A Ghana-led project with HTU, CSIR and Germany’s Rhine-Waal University is mapping baobab populations to support conservation and sustainable use. Trade & Markets: Reports note EU fresh produce wholesale remains fragmented as sourcing risks rise, while broader global trade pressures keep food supply uncertainty high.

EU Budget Clash: Commission chief Ursula von der Leyen warned against a Germany-led push for “large cuts” to the EU’s next long-term budget, stressing risks to priorities including agriculture and cohesion. Climate & Security: Germany’s foreign minister said climate change could fuel famine, extremism and migration, pointing to grain supply pressure from the Black Sea. Food Prices & Policy: Nigeria’s agriculture minister claimed prices of some essential commodities have fallen by up to 50% versus pre-2023 levels, citing expanded input delivery and rural support, with German backing mentioned. Agri Skills: A new “Livestock Technician” vocational program launched in Mongolia’s Selenge aimag with EU and German support to train husbandry and animal health specialists locally. Farm Animal Welfare: UK undercover footage alleges repeated abuse at a dairy farm, including striking calves and disbudding without long-acting pain relief, with the farm previously linked to major retailers. Energy for Farming: G7 agreed to release up to 100 million barrels of oil and diesel to ease fuel-price shocks, with diesel heavily used by haulage and agriculture. Diplomacy & Trade Routes: Germany and Russia reopened diplomatic channels, with discussion including resuming Black Sea grain and energy exports.

Agricultural Training & Machinery Links: Ten students from Turkmenistan’s agricultural university completed internships at John Deere facilities in Germany and the Netherlands, including visits to a Mannheim tractor plant and livestock training at Neumühle, with hands-on learning on modern machinery use. Food Security Coordination: Nigeria’s federal government, with Germany’s support, held a Community of Practice summit with states to align policies, data, financing and responsibilities for sustainable agrifood systems and stronger food security. Diesel and Food Prices: An “Economic Press Monitor” item warns that higher diesel prices could push fruit and vegetable prices up by as much as 20%, pointing to Germany’s diesel excise tax reduction as a possible model. EU Budget Fight (CAP & cohesion at stake): Ireland is set to present a draft seven-year EU budget, with net contributor states pushing for smaller totals while others—especially those protecting agriculture and cohesion—fight to preserve funding. Black Sea Grain Risk: Reports say a drone strike sank a merchant vessel in the Black Sea carrying grain, underlining ongoing threats to maritime food flows.

EU Budget & CAP/Cohesion Fight: Seventeen EU states led by Italy and Romania are pushing to protect cohesion policy and the Common Agricultural Policy in the 2028–2034 Multiannual Financial Framework, warning cuts would weaken Europe’s economic and social goals. Wheat Research Boost: UK crop-science group NIAB will lead a new international programme (IWYP v2.0) to speed up pre-breeding and trait validation for European winter wheat, aiming to get better traits to breeders and farms faster. Livestock Trade: Armenia has for the first time imported Holstein breeding heifers by air from Germany, as part of its cattle farming development push. EU Energy Links: A hybrid solar-wind project connecting Poland and Germany has received EU cross-border renewable status, unlocking access to funding under the Connecting Europe Facility. Food & Farming Industry: PepsiCo hosted its 2026 Global Agro University in Hannover, bringing growers and agronomists together to improve potato yields, quality and storage outcomes. EU Pig Sector Outlook: USDA forecasts EU pig slaughter to rise slightly in 2026, after 2025 improvements, with African swine fever in Spain expected to affect supply later in the year.

EU CAP & farm spending under pressure: Seventeen EU countries have pushed back against cuts that would hit farmers and regional budgets, keeping the CAP debate front and center for agriculture policy. EU wheat & grain trade signals: EU wheat prices extended gains as export sentiment improved, while reporting also highlights how the Black Sea grain blockade is still disrupting shipments and raising pressure on logistics. Germany’s energy-for-food pressure point: Germany’s Wadephul urged a swift end to the grain blockade, as policymakers weigh how fuel and energy shocks ripple into food supply chains. Dutch climate adaptation in farming: Dutch researchers are testing new crops to save peatlands, including a rice pilot that shows how warming is changing what farmers can grow. Livestock demand trend: Simmental cattle are seeing stronger sales and better clearance rates, with buyers valuing their dual-purpose performance and maternal traits. Local farming resilience: A cooperative irrigation project in Namibia (Salem Irrigation) appealed for government support over ageing water infrastructure and power shortages, underscoring how water and energy access remain decisive for farm output.

EU Grain & Wheat Markets: Euronext wheat extended gains as export sentiment improved, with traders pointing to a Saudi import tender (535,000 tons) and a weaker euro, while Black Sea disruptions and reduced Russian export forecasts kept prices supported. G7 Energy Shock for Farmers: G7 leaders agreed to release up to 100 million barrels of diesel and crude from strategic reserves over four months, aiming to ease fuel-price pressure; the deal also includes a pledge not to impose diesel export bans among members—an issue that matters for farm input costs. EU CAP & Cohesion Fight: Seventeen EU leaders urged the bloc to protect the Cohesion Policy and the Common Agricultural Policy against proposed cuts, arguing they underpin competitiveness and food security. Germany–Kazakhstan Links: Germany and Kazakhstan discussed deeper cooperation, including agriculture, as Kazakhstan signaled plans to increase oil supplies to Germany—relevant for energy-linked supply chains. Arable Weather Fallout: A report estimated Europe’s grain losses at 16.7 million tonnes (about €3.2bn), driven by heat and drought hitting wheat and maize during key growth stages. Rural Heritage & Housing: In Herefordshire, listed farm barns received permission for conversion into eight homes, highlighting ongoing pressure and opportunity around rural land use.

Grain Markets: Euronext wheat extended gains for a second session as a Saudi import tender and a weaker euro lifted export hopes, though Black Sea disruptions and shipping costs still cloud demand. Heat-Driven Crop Losses: A new estimate puts Europe’s grain losses at about 16.7 million tonnes worth €3.2 billion, with France, Hungary, the UK and Germany hit hardest after extreme heat and drought during key wheat and maize stages. CAP and Cohesion Under Pressure: Seventeen EU leaders, including Germany, urged lawmakers to protect the Cohesion Policy and the CAP from proposed 2028–2034 cuts, arguing the policies underpin competitiveness and food security. Diesel Price Shock for Farming: The G7 agreed to release 100 million barrels of oil and diesel from reserves, with a major diesel release in the first 20 days, after fuel prices surged amid geopolitical tensions—an issue that directly affects farm operations and transport costs. EU–Azerbaijan Food Diplomacy: The EU delegation in Azerbaijan hosted its fourth “Taste of Europe” festival, featuring EU member states’ cuisine and local organic farmers supported by EU funding.

Energy & Diesel Shock: G7 leaders agreed to release 100 million barrels of diesel and crude oil from emergency reserves, with a “frontloaded” substantial diesel release within 20 days, aiming to cool record fuel prices after the Iran and Ukraine wars pushed up global oil and diesel costs. Food Prices Watch: The UN reports global food prices rose again in September as supplies tightened and shipping uncertainty grew, lifting cereal, wheat and maize prices and sending sugar up sharply. German Agriculture Angle: With diesel costs rising and Europe’s refining capacity under pressure, farmers and logistics-heavy sectors face higher operating costs—exactly the kind of pressure that can feed into food prices. Climate Pressure on Crops: A Copernicus scientist warns today’s climate is moving beyond past norms, with record heat and extreme weather already reshaping seasonal conditions. Hop Harvest Risk: Heat and drought are hitting European hop yields and alpha-acid quality, with projections pointing to further declines by 2050 unless irrigation and resilient varieties keep up.

EU Methane Rules Under Review: The European Commission is considering postponing the new methane emissions rules for oil and gas imports, due to pressure from France and the US over energy security impacts; the rules were set to start in January 2027 and could bring fines up to 20% of turnover for non-compliance. Diesel Crisis Response: After US pressure and threats of a diesel export ban, G7 leaders agreed to release 100 million barrels of diesel and crude from strategic reserves over four months, with a front-loaded diesel release in the first 20 days, coordinated via the IEA; EU officials say they fully reject any diesel export ban. Heat Hits Agriculture Costs: De Nederlandsche Bank warned that climate-driven heat is already hitting European grain output and farm-related economic performance, with summer losses and knock-on food price risks cited for countries including Germany. Farm Funding Fight: Seventeen EU countries are pushing to protect agriculture and cohesion budgets in the 2028–2034 EU spending talks, setting up a direct confrontation with Germany and others seeking cuts. Animal Health Watch: Ireland’s lab has detected the midge-borne Shamonda virus in cattle samples, with dairy farmers reporting major milk drops and vets preparing for farm-level guidance.

Diesel Pressure on Farms: The US is pressing Germany and France to release emergency diesel reserves, warning of a possible ban on US diesel exports if Europe doesn’t add supply—an issue that could hit hauliers, farmers and winter logistics as EU diesel prices hit record levels around €2.24/litre. Heat-Drought Damage to Grain: A new estimate says Europe’s record heat and drought cut wheat, maize and barley output by about 16.7 million tonnes, with Germany among the hardest hit, adding fresh pressure to already tight global food markets. World Food Prices Up: The FAO reports world food prices near a four-year high, driven by higher sugar, cereals, dairy and meat costs linked to hot weather and supply disruptions. Dairy Protein Investment: Arla is investing over €63m to expand skyr and cottage cheese production, including €35m in Germany, as protein-rich dairy demand keeps shifting into everyday eating. Peatland Farming Option: A European project is showcasing paludiculture—farming on rewetted peatlands—as a way to cut greenhouse gases while creating new income streams for farmers.

Dairy Investment: Arla will pour €63m into protein-focused dairy, expanding skyr production in Germany (€35m) and cottage cheese in Sweden (€28.3m), as demand for high-protein, convenient foods keeps rising. Milk Logistics & Emissions: FrieslandCampina is partnering with transport firms to shift milk transport in Germany and the Netherlands toward biomethane (bio-CNG), aiming to cut CO2 as fleets are replaced. Climate-Driven Crops: Dutch farmers are trialling rice cultivation to tackle sinking peatlands, with a small pilot harvest and researchers testing multiple rice varieties for the local climate. Fertilizer & Food Security Tech: A Ghana AgriTech challenge backed by GIZ Ghana and partners selected startups building farmer-to-buyer digital marketplaces to reduce post-harvest losses and waste. Agri Cooperation: Kazakhstan and Germany agreed to deepen agricultural trade and investment, including technology transfer and local production, with bilateral ag trade up strongly in 2025 and 2026. Energy Pressure on Farming: The US is urging France and Germany to release emergency diesel reserves, warning of possible restrictions on US diesel exports if Europe doesn’t act—an issue that could ripple into farm fuel costs.

EU Budget Clash: EU governments are preparing for a new long-term budget proposal with cuts of more than €100bn, with farm subsidies and regional payments at risk as Germany and allies push for a smaller overall envelope. Food & Farming Inputs: A report on fertilizer markets points to continued demand for controlled-release products, while broader food-industry coverage highlights reformulation and supply resilience pressures tied to volatile commodity costs. Agritech & Space Farming: NASA, CSA and Germany’s DLR are moving toward an Earth-based demonstrator to learn how to grow crops on the Moon, aiming at future space nutrition and water recycling. Trade & Standards: Cameroon urges better coffee farmer pay to cover rising sustainability and traceability compliance costs, warning that standards shouldn’t become non-tariff barriers. Local Food Supply Chains: PepsiCo is turning to farmer knowledge-sharing to future-proof potato supply amid changing conditions. Animal Welfare: Rescuers saved 70 dogs from a closing South Korean dog meat farm as the industry ban takes full effect in 2027.

EU Budget Standoff: German Chancellor Merz and five other leaders threaten to block the EU’s next 7-year budget unless agriculture and poorer-region spending are cut, putting fresh pressure on Brussels ahead of major elections. Trade & Tariffs: G20 trade ministers open talks in Milwaukee as Trump’s tariffs loom; analysts expect deadlock over forced-labour claims and China’s export overcapacity. Energy Costs Hit Farmers Indirectly: Destatis reports Germany’s import prices jumped 8.3% in August, driven by sharply higher energy costs; agricultural imports were slightly cheaper, but the overall cost shock remains. Food Loss Focus: A South Africa-Germany research chair highlights how reducing food loss and waste can strengthen smallholder farmers and food security—relevant for EU sustainability debates. Renewables & Grid: Nordex won a 42MW order for the Lambacher Höh wind farm in Rhineland-Palatinate, with mixed turbine types and service through 20 years. Migration & Farm Labour: Egypt says irregular migration to Europe fell 67% in 2026 while expanding regular labour pathways, including seasonal agricultural routes.

EU Farm Funding Under Pressure: Germany and five other EU states threaten to veto the bloc’s 2028–2034 budget unless spending is cut by hundreds of billions, with demands to reduce farm support and redirect money toward defence, competitiveness and innovation. Climate Hit to Agriculture: EU Agriculture Commissioner Christophe Hansen estimates extreme summer heat, drought and wildfires caused €14–€17bn in damage to EU farming, with grass shortages stressing livestock; he pushes for water storage, smarter irrigation and mandatory insurance (only 12% of production is insured). Grain Deal Push: Germany’s FM Johann Wadephul calls for a Black Sea ceasefire as a first step to restart grain shipments before spoilage, warning disruptions could trigger famine and refugee flows. Wheat Research Milestone: The Wheat Initiative marks 15 years of international wheat research collaboration, coordinating shared priorities and research infrastructure to tackle global food security. Food Security Innovation: A new autonomous farming case shows a US farmer planting an entire corn crop with driverless equipment, aiming to cut costs after drought forced fertilizer and staff reductions.