Agricultural prices continued to decline during the second quarter of 2024 in the European Union, both in terms of producer prices and the prices paid by producers. However, Cyprus was one of the few countries where product prices increased, despite the fact that the costs for producers decreased, according to data published by Eurostat, the EU's statistical office.

Specifically, in the second quarter of 2024, agricultural prices in the EU dropped compared to the same quarter in 2023, both for outputs (prices at which products are sold by producers before subsidies) and inputs (prices paid by producers when purchasing products and services for agricultural and livestock production) that are not related to investments.

The average price of agricultural production fell by 3% in the second quarter of 2024 compared to the same quarter in 2023, while during the same period, the average input price decreased by 7%. These decreases, however, were slightly less pronounced than in the previous two quarters.

In Cyprus, the second quarter of 2024 saw a 3% increase in producer prices, making it one of only eight countries with available data where producer prices rose. During the same period, the average input price fell by 9%.

Most EU countries (17 out of 25 with available data) recorded a decrease in agricultural product prices in the second quarter of 2024, compared to the same quarter in 2023. The most significant price drops were observed in Hungary (-13%), Poland (-12%), and the Czech Republic (-10%).

In contrast, the highest increases were recorded in Greece (+8%), Latvia (+4%), Cyprus, and Ireland (+3%).

As for non-investment-related inputs, all EU countries with available data saw reductions in the second quarter of 2024 compared to the second quarter of 2023. The largest decreases were recorded in Croatia (-14%), Hungary, Spain, and Slovakia (-11% each).

At the EU level, following a period of sharp increases in agricultural prices during 2021 and the first three quarters of 2022, price growth slowed, and prices eventually began to decline. The recent reductions in agricultural production and input costs are moving towards lower levels than before 2021.

In Cyprus, the increase in producer prices began to slow down in the second quarter of 2023, following the rest of Europe, while the average input price started to decelerate after the third quarter of 2022, and began to fall in the second quarter of 2023.

Eurostat reports diverging trends across the EU for different products concerning producer prices in the second quarter of 2024 compared to the same quarter of 2023. Significant price drops were recorded for eggs (-15%), cereals (-14%), and forage plants (-13%). On the other hand, supply shortages led to continued price increases for olive oil (+41%) and potatoes (+10%).

Overall, fruit and vegetable prices showed moderate changes (+3% overall for fruits and -1% for vegetables, respectively), although there were notable differences between specific products. Among fruits, the largest decrease compared to the same period in 2023 was for lemons and limes (-48%), while the largest increase was for fruits from subtropical and tropical climates (+51%). As for vegetables, there were sharp declines in the prices of onions (-46%) and tomatoes (-27%), in contrast to the sharp increases in fresh pulses (+39%) and cauliflowers (+35%).

Among non-investment-related inputs, the sharpest price drops were recorded for fertilizers and soil improvers (-19%) and animal feed (-13%).