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Agricultural products in EU countries are cheaper, further reflection is expected in global markets

2023-12-21 11:12:24Biznes SHKRUAR NGA REDAKSIA VOX

Agricultural products in EU countries are cheaper, further reflection is

Prices in the EU agricultural sector for both output and non-investment-related inputs fell in the third quarter of 2023, confirming the turnaround from strong price growth throughout 2021 and 2022. These latest data suggest a further decline in global agricultural markets after a period of disruption.

The average price of agricultural products that farmers receive at the farm gate fell by 9% in the third quarter of 2023 compared to the same quarter of 2022. There was also an acceleration in the rate of decline in the price of non-investment related agricultural inputs. from -5% in the second quarter of 2023 to -11% in the third quarter.

The increase in agricultural production prices peaked in the third quarter of 2022, +30% compared to the same quarter of 2021. Then there was a marked slowdown in price growth until the decline in the third quarter of 2023: +26% in the fourth quarter of 2022, +17% in the first quarter of 2023 and +2% in the second quarter of this year.

The overall decline in the price of agricultural products in the third quarter of 2023 reflected strong contrasts between individual products. The average price of cereals fell by about a third -32%. The price of milk also fell sharply by 15%, and there were more moderate declines for fruit -5% and poultry -3% among other products.

In contrast, there were also some sharp price increases in the third quarter of 2023: the biggest increase was for olive oil +73% compared to the same quarter of 2022, followed by potatoes +48% and sugar beet +44%.

Among non-investment inputs, the sharpest rates of price decline were for chemical fertilizers -36%, energy and lubricants -18% and animal feed -12%.


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