In the first quarter of 2025, the average price of agricultural output in the EU increased by 2.6%, marking the second consecutive quarter of growth.
The cost of goods and services used in agriculture — excluding investment-related items such as energy, fertilisers, and animal feed — also edged up slightly by 0.2%. This marked the first uptick in agricultural input prices since Q1 2023.
These figures come from Eurostat’s latest release on agricultural price indices.
Among major agricultural products, milk (+12.6%), eggs (+10.7%), and cereals (+9.6%) saw significant price increases compared to the same period in 2024. In contrast, sharp declines were recorded for olive oil (-43.5%), potatoes (-13.4%), and pigs (-11.2%).
Looking at non-investment-related inputs, veterinary costs rose the most (+3.0%), followed by moderate increases in fertilisers (+0.9%) and energy and lubricants (+0.7%).
Widespread Price Increases Across EU Member States
Price hikes in agricultural output were observed in most EU countries in Q1 2025 compared with Q1 2024. The highest increases were reported in Ireland (+19.3%), Luxembourg (+15.6%), and Hungary (+14.6%).
Conversely, some countries experienced declines, including Spain (-9.7%), Greece (-7.1%), Portugal (-2.8%), and Malta (-2.0%).
For agricultural inputs unrelated to investment, 14 countries recorded price increases. The largest rises were seen in Hungary (+6.8%), the Netherlands (+6.2%), and Romania (+5.8%). On the other hand, the steepest declines occurred in Lithuania (-5.0%), Cyprus (-3.8%), and Latvia (-3.6%).
Frequently Asked Questions (FAQs) and Concepts
What is an agricultural price index?
An agricultural price index tracks changes in prices received by farmers for their outputs and paid for inputs over time. It’s essential for measuring inflation in the farming sector and guiding agricultural policy. Governments and institutions use it to adjust subsidies and support. For example, a rising index may signal increasing production costs. It’s published regularly by agencies like Eurostat.
What is agricultural credit?
Agricultural credit refers to loans and financial services made available to farmers for production and investment. It’s crucial for purchasing seeds, equipment, or land, especially for small-scale farmers. Timely credit improves crop yields and supports food security. Examples include seasonal crop loans or tractor financing. Banks, cooperatives, and governments often provide it.
What are agricultural inputs?
Agricultural inputs are materials or services used in farm production such as fertilisers, seeds, pesticides, water, and energy. Their quality and cost directly affect crop yield and food prices. For example, rising fuel or fertiliser prices can reduce profits. Managing inputs efficiently is key to sustainable farming. They’re a major factor in agricultural economics.
How do output prices affect farmers?
Output prices determine the revenue farmers earn from selling products like milk, wheat, or eggs. When prices rise, farmers may benefit financially—but only if input costs don’t rise even more. For example, high wheat prices can boost income unless fertiliser prices surge too. Output prices also affect consumer food costs. They’re closely watched by both markets and policymakers.
What is clean financing in agriculture?
Clean financing involves loans or support for eco-friendly agricultural practices like organic farming, solar irrigation, or reduced pesticide use. It promotes sustainability, climate resilience, and healthier food systems. For instance, a farmer receiving a green loan to install drip irrigation is using clean finance. It’s increasingly supported by development banks and governments. It also reduces the sector’s environmental footprint.
What causes food price inflation?
Food price inflation happens when food costs rise due to factors like drought, higher transport costs, supply chain issues, or global demand. For example, war or climate events can disrupt grain supply and spike prices. It affects household budgets, especially for low-income families. Policymakers track it to manage food security. It’s a major economic indicator in 2025.
What is the EU Common Agricultural Policy (CAP)?
The CAP is the European Union’s main agricultural program offering subsidies and support to farmers while encouraging sustainable practices. It affects food supply, rural livelihoods, and environmental goals. For example, a dairy farmer receiving CAP payments must follow certain animal welfare standards. The 2023–2027 phase focuses on climate-smart agriculture. It plays a vital role in EU food policy.
<strong data-start="3249" data-end="3292">What is a post-budget press conference?
A post-budget press conference is held by finance or agriculture ministers after the national budget is presented. It provides details on allocations, tax policies, and sector-specific impacts. For instance, changes in agri-tax reliefs or subsidies are explained here. It’s vital for transparency and clarifying government intentions. Media and stakeholders use it to interpret budget impacts.
How do agriculture taxes impact farmers?
Taxes on agriculture—like levies on fertilisers, land, or diesel—can increase production costs and reduce profit margins. However, targeted taxes may encourage sustainability, such as water-use efficiency. For example, fuel taxes may promote solar-powered pumps. Poorly designed taxes can burden smallholders. Balanced taxation helps fund rural infrastructure and services.
What is Eurostat?
Eurostat is the official statistical office of the European Union that collects and publishes data on EU economies, including agriculture, population, and trade. It helps inform policy and economic planning across member states. For instance, it releases agricultural price indices quarterly. Researchers and governments rely on its accuracy. It’s a trusted data source in Europe.
How do rising milk and egg prices affect consumers?
When prices of basics like milk and eggs rise, household grocery bills increase, especially affecting low-income families. For example, a 12% milk price rise can pressure school meal budgets. It reflects broader food inflation trends. Policymakers monitor this for subsidy or support programs. It’s also tied to supply chain and input cost dynamics.
When did the EU release its Q1 2025 agricultural report?
The EU, via Eurostat, released its Q1 2025 agricultural price index report in June 2025. It provides quarterly insights into price trends for agricultural products and inputs. For example, it showed rising cereal and egg prices across Europe. This helps farmers, analysts, and governments plan ahead. It’s a key reference for agricultural economics.
What is the significance of olive oil price drops in 2025?
In 2025, olive oil prices dropped by over 40%, signaling a supply-demand imbalance or market oversaturation. For producers in Spain and Italy, this means lower income and export challenges. It also benefits consumers with cheaper prices. Governments may intervene to support affected farmers. It’s a notable example of volatile commodity pricing.
What is food security and why is it relevant now?
Food security means having reliable access to sufficient, safe, and nutritious food at all times. It’s crucial in 2025 due to rising food prices, climate shocks, and geopolitical conflicts. For instance, extreme weather can destroy crops and disrupt supply. Ensuring food security involves resilient agriculture and strong safety nets. It’s a global development priority.
Why are veterinary expenses rising in agriculture?
Veterinary costs are increasing due to stricter animal health regulations, rising medicine prices, and climate-linked disease risks. For example, heatwaves raise the need for livestock care and vaccines. These expenses add to farmers’ production costs. Good animal health improves food quality and safety. It’s an often-overlooked but vital input cost.
