The European Union’s agricultural sector experienced a modest contraction in 2024, with the overall output value declining by 0.9 percent from the previous year, according to Eurostat. This marks the second successive year of a downturn since the sector reached its peak output value in 2022.
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Overview Of The Sector Performance
The total value of agricultural output for the EU in 2024 was reported at €531.9 billion in basic prices, down from €536.7 billion in 2023. Analysts attributed this decline primarily to a 1.8 percent drop in nominal prices for agricultural goods and services, despite a modest 1.0 percent increase in the volume of output.
Country-Specific Developments
While output values rose in 15 EU countries, notable increases were recorded in Ireland (8.9 percent), Croatia (8.8 percent), and Sweden (5.0 percent). In contrast, significant contractions occurred in France, Romania, and Bulgaria, with declines of 9.0 percent, 8.5 percent, and 8.0 percent respectively, underscoring divergent regional performance across the bloc.
Sectoral Contributions And Trends
Crops accounted for approximately half of the total output (50.3 percent or €267.7 billion), although this segment experienced a 3.1 percent decrease from 2023. Conversely, animal and animal product outputs, representing 41.1 percent of the total value at €218.8 billion, saw growth of 1.9 percent. The remaining 8.5 percent of the total value was derived from agricultural services and secondary activities, which registered a slight decline of 0.6 percent, totaling €45.4 million.
Improved Efficiency And Value Addition
The report also noted a 3.7 percent decline in non-investment agricultural input costs, or intermediate consumption, which amounted to €303.3 billion in 2024. This reduction, combined with shifts in the output values, led to a 3.1 percent increase in the gross value added by the agriculture sector, ultimately rising to €228.6 billion. Such dynamics highlight the sector’s ongoing efforts to enhance overall efficiency and value creation amidst challenging market conditions.
