The EU is witnessing a decline in agricultural prices

The average price of agricultural products in the European Union (EU) showed a slight increase of only 2% in the second quarter of 2023 compared to the same period last year. Compared to the first quarter of this year, the annual increase in the average price was 17%, according to Eurostat, the EU's official statistical service.

Cereal prices dropped significantly, by 31% over the reporting period.

The sharpest price increases in the second quarter of 2023 among the main groups of agricultural products are citrus fruits (+89% on average), olive oil (+48%) and potatoes (+38%). A drop in production in drought-affected regions was one of the main reasons for this price increase.

Other products that saw significant price increases were eggs (+31%) and pork (+28%). At the same time, prices for poultry (+4%) and milk (-2%) remained stable.

At the national level, in most EU countries (out of 27), prices for agricultural products continued to rise in the second quarter of 2023 compared to the same period last year.

The largest price increases were recorded in countries affected by drought: Portugal (+22%), Greece (+21%) and Spain (+16%).

In Lithuania (-26%) and Estonia (-15%), there was a sharp decline in prices.

Among non-investment goods and services, the largest price declines were observed in the categories of fertilizers (-23%), energy and lubricants (-13%), and animal feed (-5%).

The average price of goods and services consumed in agriculture (non-investment expenditures) decreased by 5% from the second quarter of 2022 to the second quarter of 2023, the first decline since the fourth quarter of 2020.