Price Growth in EU Agriculture Eased at the End of 2022, Similar in Croatia

Prices in EU Agriculture eased at the end of 2022, having peaked during spring and summer, with similar trends observed in Croatia, a report from Eurostat revealed on Wednesday.

Strong price growth in agriculture in the EU was recorded in all quarters of last year, with the strongest being in the second and third, before slightly slowing in the fourth quarter for both agricultural products and inputs, the EU’s statistical office noted.

In the last quarter of 2022, the basket of agricultural products was on average 26 percent more expensive than in the same period the previous year. In the third quarter, it was 30 percent higher than in 2021, European statisticians determined.

All EU countries recorded double-digit price growth for both agricultural products and goods and services used in agriculture in the fourth quarter compared to the same period the previous year, with the exception of Malta, where the growth was closer to the middle of the single-digit range.

Surge in Hungary

The highest growth in the average price of agricultural products in the fourth quarter compared to the same quarter in 2021 was recorded in Hungary, at 53 percent. This was followed by Poland and Germany, where prices increased by 44 and 38 percent, respectively.

In Croatia, agricultural product prices in the fourth quarter of 2022 were on average 21.7 percent higher compared to the same quarter the previous year, after a 27.53 percent increase in the period from July to September, the strongest in the previous year.

In the second quarter, agricultural products in Croatia were 22.07 percent more expensive than a year earlier, and in the first quarter, they were 11.42 percent higher, Eurostat tables show.

The most modest price growth for agricultural products in the fourth quarter was recorded in Malta, at just four percent. This was followed by France, Cyprus, and Italy, where prices increased by around 15 percent.

Spike in Input Costs

The spike in agricultural product prices in the EU reflected the rising costs of goods and services used in agricultural production, with an annual growth rate of 27 percent in the last three months of 2022.

The data shows a slowdown in the growth of input costs at the end of last year, as they were on average 36 percent higher in the third quarter than in the same period the previous year.

Average input prices in agriculture rose the most in Lithuania, by 51 percent compared to the fourth quarter of 2021. Hungary and Slovakia followed closely, with increases of 47 and 39 percent, respectively.

In Croatia, input prices in agriculture in the fourth quarter of 2022 were 29 percent higher than in the same period the previous year, after jumping by 44.84 percent in the third quarter.

The strongest increases were in the second quarter, at 50.05 percent, following a 40.18 percent increase in the first three months of last year, Eurostat tables show.

The mildest increase in agricultural input prices was recorded in Malta, at just seven percent compared to the fourth quarter of the previous year. This was followed by Portugal, with 17 percent higher input costs, and Luxembourg, where they were one-fifth higher than a year earlier.

Expensive Eggs

According to product categories, eggs saw the highest price increase in the last quarter of last year, rising by as much as 64 percent compared to the fourth quarter of 2021.

This was followed by pigs and olives, whose prices were more than 50 percent higher compared to the end of 2021.

Among the goods and services used by agricultural producers, fertilizers and soil improvers saw the highest price increases, at 55 percent. This was followed by energy and lubricants, which rose by 41 percent.

Animal feed also saw a significant price increase, rising by 29 percent compared to the last three months of 2021, Eurostat reported.