Poland complained that European food retailers have kept prices of food too high, causing farmers to abandon the industry.

The increasing disparity between food prices at the consumer and producer levels is forcing suppliers to cut prices, thus reducing farmers' incomes.

“The observed decline in the prices of agricultural products, which is not offset by the reduction of production costs, leads to the deterioration of farmers' financial situation," said a note obtained by Reuters, which Poland sent to a meeting of EU farm ministers in Brussels.

"It should be emphasized that despite a decline in prices in the agricultural sector, the prices paid by consumers are still high or are not reduced. Many farmers give up agricultural production, as it is not sufficiently profitable," it said.

Food-related expenses amounted to 26 percent of total household expenditures in Poland – almost twice the EU average – the note said. (RG)

Source: Thomson Reuters