Identifier
Created
Classification
Origin
08LJUBLJANA195
2008-04-30 10:46:00
UNCLASSIFIED
Embassy Ljubljana
Cable title:  

RESPONSE: IMPACT OF RISING FOOD/AGRICULTURAL

Tags:  EAGR EAID ETRD ECON PGOV PREL SI 
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VZCZCXYZ0000
RR RUEHWEB

DE RUEHLJ #0195 1211046
ZNR UUUUU ZZH
R 301046Z APR 08
FM AMEMBASSY LJUBLJANA
TO SECSTATE WASHDC 6657
UNCLAS LJUBLJANA 000195 

SIPDIS

SIPDIS

EEB/TPP/ABT/ATP JANET SPECK, EUR/NCE TOM YEAGER

E.O. 12958: N/A
TAGS: EAGR EAID ETRD ECON PGOV PREL SI
SUBJECT: RESPONSE: IMPACT OF RISING FOOD/AGRICULTURAL
COMMODITY PRICES - SLOVENIA

REF: A. SECSTATE 39410


B. LJUBLJANA 71

Minor Political/Economic/Environmental Impact
---------------------------------------------

UNCLAS LJUBLJANA 000195

SIPDIS

SIPDIS

EEB/TPP/ABT/ATP JANET SPECK, EUR/NCE TOM YEAGER

E.O. 12958: N/A
TAGS: EAGR EAID ETRD ECON PGOV PREL SI
SUBJECT: RESPONSE: IMPACT OF RISING FOOD/AGRICULTURAL
COMMODITY PRICES - SLOVENIA

REF: A. SECSTATE 39410


B. LJUBLJANA 71

Minor Political/Economic/Environmental Impact
--------------


1. (U) Slovenia is an EU and eurozone member with a high
level of political and economic stability. Rising food
prices have not yet had any environmental impact in Slovenia.
The main political and economic impact of increases in
consumer food prices in Slovenia is in regards to inflation.
Slovenia's inflation currently stands at 6.5 percent and the
sharp rise in food prices has contributed to Slovenia
inflation rate, the highest of all the eurozone countries.
Food prices in Slovenia went up 13 percent from October 2006
to October 2007 and is on the rise. This rise in food prices
and inflation spurred several public protests in March and
April by Slovene trade unions for higher wages in line with
inflation. With parliamentary elections approaching this
fall, higher food prices might become even more of a
prominent political issue. Although commodity prices are
also increasing, the Government of Slovenia attributes the
rise in its inflation to the retail sector. Thus far, there
has been no impact on public attitudes toward agricultural
biotechnology or biofuels.

Steady Supply and Demand
--------------


2. (U) Slovenia's demand and supply of food has not
changed. Slovenia's agriculture sector contributes less than
2 percent to the gross domestic product (GDP). Slovenia is a
net importer of food. While Slovenia produces potato, meat,
fruit, vegetables and some grain for domestic use, it imports
rice, soy, and most grains from Eastern Europe and Asia. So
far, this country of 2 million has been able to maintain its
level of food imports.

Policies Remain the Same
--------------


3. (U) As an EU member state and a part of the eurozone,
Slovenia's political and economic policies are harmonized
with the EU's. Slovenia has not made any domestic changes in
policy in response to food prices. Post has not been
involved in food issues in Slovenia and has no concrete
suggestions for policy changes.


SHELTON

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