EU Farm Prices Surge Amid Rising Input Costs

Farmers across the European Union are grappling with escalating prices for essential supplies, causing significant increases in the cost of key agricultural products like milk, eggs, and cereals, according to a recent report. This shift is impacting consumers and reshaping the agricultural landscape.

Soaring Prices for Essential Goods

Eurostat data indicates that the average price of agricultural output in the EU saw a 2.6% increase during the first quarter of 2025. This marks the second consecutive quarter of rising prices. The cost of goods and services used in agriculture also climbed slightly, reversing a downward trend that began in early 2023.

Compared to the first quarter of 2024, the prices of milk, eggs, and cereals experienced substantial increases. Milk prices rose by 12.6%, eggs by 10.7%, and cereals by 9.6%. In contrast, prices for olive oil, potatoes, and pigs declined. Olive oil prices fell by 43.5%, while potatoes and pigs decreased by 13.4% and 11.2%, respectively.

Input Costs Drive Price Hikes

In the first quarter of 2025, 14 EU countries saw price increases for agricultural inputs. The most significant rises were recorded in Hungary (+6.8%), the Netherlands (+6.2%), and Romania (+5.8%). Conversely, Lithuania (-5.0%), Cyprus (-3.8%), and Latvia (-3.6%) experienced the steepest price declines. Veterinary expenses saw the largest increase among inputs, with a 3.0% rise, followed by fertilizers at 0.9% and energy and lubricants at 0.7%.

Of the EU nations that saw price increases, Ireland (+19.3%), Luxembourg (+15.6%), and Hungary (+14.6%) registered the sharpest rates. In contrast, Spain (-9.7%), Greece (-7.1%), Portugal (-2.8%), and Malta (-2.0%) reported price drops.

The current economic climate has also seen shifts. For example, a recent report from the U.S. Department of Agriculture (USDA) indicates that food price inflation is expected to remain above historical averages in 2025, influenced by rising energy costs and supply chain disruptions (USDA, 2025).

Looking Ahead

These trends underscore a complex situation for the agricultural sector, with rising input costs affecting both producers and consumers. The interplay of prices across different agricultural products paints a dynamic picture.