Local farmers are struggling to absorb the financial blow brought about by increased production costs triggered by the Russia’s war on Ukraine.
From the price of animal feed and plant fertiliser, to the cost of greenhouse plastic sheets – every step of their production line has become more expensive.
But the competition from imports, together with issues like food fraud where foreign produce is sold under the local label, are forcing them to absorb the costs.
This was the picture painted when Times of Malta spoke to various farmers, and people who work in the agriculture sector, at Malta’s first AgriFair at MFCC in Ta’ Qali.
“The price of agriculture supplies has shot up across the board, which is a big problem for the local farmers who are struggling. We need to understand how important the sector is and take measures to safeguard it,” said farmer Joseph Muscat whose family specialises in cultivating greenhouse crops.
Muscat spoke about the ever-increasing production costs brought about by the coronavirus pandemic and the Ukraine war. Plastic coverings for greenhouses increased 70 per cent in a month, as did fertiliser.
Kurt Grima, from BSS, which provides fertilisers among other agriculture supplies, said fertiliser prices escalated “almost 100-fold”. Emmanuel Schembri, from Lapsi Feeds, spoke about the spike of animal feed costs. The war had not impacted supply as such, but the prices were increasing.
“The increases are monthly – about five or six per cent a month – and the impact is being transferred to the farmer who cannot extend the cost to the consumer to compensate for the big losses,” he said.
Oliver Frendo, general manager of the Pig Breeders Cooperative, elaborated that one of the largest expenses in production was the feed costs.
It is estimated that 30 per cent of the world’s wheat comes from Ukraine.
We cannot keep thinking of the economy only in terms of certain sectors
“Since the cereal costs have spiked because of the war, it has affected greatly the cost of production. At the same time, people are feeling the pinch and don’t feel like they can spend much more on their food. This limits the option of putting the price up to counter the cost of production, which puts us in a very tight spot. Right now, we are just trying to get by,” he said.
Brian Vella, CEO of the Malta Food Agency, set up to give value to local food, said that the pandemic and the war helped people realise the importance of food security.
“Today we are realising that food security ought to be given priority in all countries, especially Malta, being an island. We cannot keep thinking of the economy only in terms of certain sectors, such as construction. We need to stop and think about what we will eat.
“We’ve seen explosions in food prices that are impacting food security. Malta can never be self-sustainable, but we can give value to the food we are producing. Today it is not acceptable that the farmer gets €1 for a whole box of crops when the consumer pays €1 per individual item,” he said.
Muscat, the farmer, said that among the main hurdles faced by farmers were the astronomical price of land, issues brought about by climate change, the often unfair competition from imports and the lack of young farmers being attracted to the industry.
Jeannette Borg, from the Maya (Malta Youth in Agriculture) Foundation, said there were about 1,300 registered farmers aged under 40 in Malta.
Her master’s research, which is in the process of being published, showed there were “ghost” young farmers who helped out but were not on the books.
While the numbers of young farmers are low, compared to the EU figures, she believed the passion was there and should be encouraged.
She spoke about the need for more support from authorities to make agriculture less bureaucratic as well as the need for more enforcement against food fraud, and the need to revamp the sector itself by encouraging farmers to look to the future and better brand their products.