In 2024, agricultural prices in the European Union experienced a modest decline of 2% compared to the previous year. This decrease came after sharp price increases in 2021 and 2022, which were attributed to factors such as the COVID-19 pandemic, extreme weather conditions, and Russia’s invasion of Ukraine. Despite a surge in olive oil prices, the prices of essential food products like cereals, eggs, vegetables, and horticultural products saw drops. Additionally, the prices of pigs and poultry also decreased by 7% and 8%, respectively. Milk prices decreased in 16 EU countries, with the sharpest decline recorded in Finland, followed by Portugal and Spain. On the production side, the cost of seeds and veterinary services rose, while prices for fertilizers, food for animals, and plant protection products fell.
The European Commission introduced measures to protect farmers and ensure fair compensation for their products. These measures include mandatory written contracts that outline key terms such as price, quantity, and delivery timelines, taking into account market conditions and cost fluctuations. The package also aims to enhance enforcement of the Unfair Trading Practices (UTPs) Directive, which was adopted five years ago but has not been fully implemented. These measures were introduced in response to regular protests by farmers who have been forced to sell their products below production costs.
In 2024, five essential food products, including milk and cereals, saw price drops after experiencing significant increases in previous years. The decline in agricultural prices in the EU was attributed to various factors, such as the COVID-19 pandemic, extreme weather conditions, and geopolitical events like Russia’s invasion of Ukraine. Despite a surge in olive oil prices, the prices of cereals, eggs, vegetables, and horticultural products decreased. Prices for pigs, poultry, and milk also saw reductions in several EU countries, while the costs of seeds and veterinary services rose.
The proposed measures by the EU Commission aim to ensure that farmers receive fair compensation for their products and are not forced to sell below production costs. These measures include the introduction of mandatory written contracts that specify key terms, such as price and quantity, taking into account market conditions and cost fluctuations. The package also seeks to strengthen enforcement of the Unfair Trading Practices (UTPs) Directive, which was adopted but has not been fully implemented. These measures were developed in response to ongoing protests by farmers who have been struggling with low prices and unfair trading practices.
Overall, the agricultural sector in the EU experienced a modest decline in prices in 2024, following sharp increases in previous years. While olive oil prices surged, the prices of essential food products like cereals, eggs, vegetables, and horticultural products dropped. Prices for pigs, poultry, and milk also decreased in several EU countries. The EU Commission introduced measures to protect farmers and ensure fair compensation for their products, including mandatory written contracts and enhanced enforcement of the Unfair Trading Practices (UTPs) Directive. These measures aim to address the challenges faced by farmers who have been protesting against low prices and unfair trading practices.
