Sensitivity of the Agribusiness Sector to Sudden Changes in the Prices of Energy Carriers on the Example of Poland: Current State and Challenges

Abstract

The article provides an overview of various studies on energy consumption in agriculture. The focus was in particular on the sensitivity of farms and agribusiness to fluctuations in the prices of energy carriers, which is currently a problem for the entire food industry. In addition to the prices of direct energy carriers, biofuels, the EU ETS system, and fertilizers were identified as the main areas that play a key role in shaping the direct and indirect impact on the economic performance of agricultural producers. Moreover, it was presented how sensitive the food sector is to the limitations of fertilizer production, during which by-products necessary in food processing are produced. The production of fertilizers consumes almost half of the energy used in agriculture, but the lack of fertilizers means yield drops of 30–50%. Therefore, high energy prices and disruptions in its supply are a threat to the food security of a country, both from the perspective of agriculture and processing. Based on the literature review, research gaps have been identified that should guide future research.

Keywords

• GHG
• agriculture
• energy consumption
• farms
• FADN