European Countries Sees New Values for Agriculture Sector in 2023

By Shubhendra Anand , 22 August, 2023

The World Bank publishes data on world development indicators, holding Europe's gross domestic product at about 1.6 percent in agriculture, forestry, and fishing for 2023. In the spring of 2023, European Union farmers have shown resilience due to above-average input costs and lower commodity prices.

Germany is the least dependent on agriculture among the European countries as the service sector covers up around two-thirds of the gross value added. In contrast, the United Kingdom and Switzerland have 0.7 and 0.6 percent dependency on agricultural yield, respectively. Agriculture is more important for Albania and the Republic of Moldova, with a gross domestic product (GDP) rate of 17.7 and 10.6 percent, respectively. In developed countries, the low value for the agricultural yield is common as most of the value is produced in the service sector. According to the data published by Eurostat, the prices are increasing or agricultural commodities in the first quarter of 2023. The average price of farm products in the European Union increased significantly to more than 17 percent between the first quarter of 2022 and 2023.

The sources report that the production of agricultural output incurs costs; thus, farmers purchase goods and services to be used as inputs in the production process. The input prices are not related to the investment; hence, the output prices increase in the first quarter of 2022, and 2023 is associated with the average cost of goods and services consumed in agriculture in the European Union for 2023. It has increased by 11 percent for the same group of inputs. In the recent Agricultural and fisheries council in July 2022, the officials discussed the impact of assessment on the sustainable usage of plant protection products and its impacts. After a lengthy discussion over plant protection and its effects, the European Union decided later to study in detail at the technical level and express officials' willingness to work effectively to reach an agreement on this proposal.

Developments of Agricultural Input and Output Price indices in EU