We have long been accustomed to tomatoes, peppers and cucumbers from the greenhouse in the winter. Vegetables that are rich in vitamins despite the frost could now become scarcer and therefore considerably more expensive. As electricity and gas for energy-intensive agricultural areas – such as heated greenhouses, fertilizer or cooling installations – become more expensive, many companies are suspending production.
“Almost every company suffers from this, for example, cooling installations for fruit processing are powered by electricity. There is practically no branch of agriculture that is not affected by inflation,” explains Franz Sinabell, an agricultural economist at the economic research institute Wifo, to the Ö1 “Morgenjournal”.
Vegetable growing in Europe is particularly energy-intensive and has therefore been hit hard by the high prices. The problem is particularly serious in countries located further north, because the colder it is, the higher the heating costs for the greenhouses. Some vegetable growers in the Netherlands have already changed their business model because of this, explains Sinabell. Instead of burning the cheaply purchased natural gas, they prefer to sell it for a profit.
Some companies stop production
According to the Wifo expert, many companies are currently considering whether it would not be cheaper to sell their gas to energy companies that generate electricity with it than to run greenhouses with it. In Austria, some vegetable growers have already stopped their cultivation. “My estimate is that vegetables will become scarcer as a result,” says Sinabell. As a consumer you will notice that vegetables are becoming more expensive.
Southern countries could compensate for the loss, but time will tell, said the agricultural economist.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
