Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. Warns Food Costs May Double With Farm-to-Fork Push

Published 10/07/2020, 11:17 AM
Updated 10/07/2020, 12:36 PM
© Bloomberg. Sonny Perdue

(Bloomberg) -- U.S. Agriculture Secretary Sonny Perdue warned that the European Union’s “Farm to Fork” environmental initiative will stoke trade tensions as European producers face higher costs and seek protectionist measures.

Perdue said in a conference call Tuesday with European and U.S. reporters that world food prices would double if the initiative were followed globally. He said that the estimate was based on conclusions from U.S. Department of Agriculture economists he spoke to.

The EU is seeking to reduce the environmental footprint of its farming and food production industry as part of its ambitious Green Deal agenda to make the bloc climate-neutral by the middle of the century.

The “Farm to Fork” strategy maps out the ways for the region to halve the use of pesticides and antibiotics, boost organic farming, promote plant-based proteins and make every link of the food system more sustainable.

It’s “extremely problematic” to agriculture trade to impose Farm to Fork, characterizing it as relying on “subjective” standards, Perdue said. While he doesn’t think Farm to Fork is in itself protectionist, Perdue said it will inevitably lead to protectionist policies.

Greening agriculture is one of the biggest challenges in the fight against climate change, with food systems responsible for as much as 30% of global greenhouse-gas emissions.

While environmental lobbies have urged a bolder approach by the commission to tackle climate change, the EU strategy has already sparked concerns among farmers and food producers who fear that stricter requirements will undermine their businesses at the time of a recession.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

©2020 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.