Ireland Leads EU in Milk Price Surge as Agricultural Markets See Mixed Trends in 2024: Eurostat
Source: DairyNews.today
Ireland recorded the most significant milk price increase in the European Union in 2024, according to a Eurostat report released on December 19. Milk prices in Ireland surged by 15%, contrasting sharply with price declines in 16 EU member states, including Finland (-12%), Portugal (-10%), and Spain (-8%).
Lithuania and Latvia followed Ireland closely, with milk prices rising by 11% and 10%, respectively.
Agricultural Price Trends Across the EU
Preliminary Eurostat estimates for 2024 revealed an overall 2% dip in the average price of agricultural goods (outputs) across the EU compared to 2023. At the same time, the cost of goods and services consumed in agriculture (inputs) fell by 6%, signaling some relief for farmers grappling with production costs.
This decline follows a period of sharp price increases in 2021 and 2022, coupled with a more moderate rise in 2023.
Sector-Specific Price Fluctuations
The report highlighted significant variability in price changes across agricultural products:
Sharp Increases:
Olive oil prices jumped by 30%, driven by supply constraints and heightened demand.
Potatoes, including seed potatoes, rose by 12%.
Certain fruit prices increased by 7%.
Moderate Increases:
Cattle prices rose by 2%, while milk saw a modest average increase of 1% across the EU.
Declines:
Cereals experienced the steepest drop, falling 15%.
Eggs and pig prices declined by 8% and 7%, respectively.
Poultry prices fell 6%, while vegetables and horticultural products slipped by 2%.
Input Cost Adjustments
The report also highlighted shifts in the prices of goods and services consumed in agriculture:
Increases:
Seeds and planting stock, along with veterinary expenses, each rose by 3%.
Decreases:
Fertilizers and soil improvers saw a sharp 18% drop, while feedingstuffs declined by 11%.
Energy lubricants fell by 8%, and plant protection products and pesticides dipped slightly by 2%.
Ireland’s Exceptional Milk Price Surge
While the average milk price in the EU rose by just 1%, Ireland’s 15% increase underscores the sharp regional disparities in agricultural markets. The robust price rise in Ireland contrasts starkly with the declines seen in much of Southern and Western Europe, where markets for milk and dairy products faced greater downward pressure.
Outlook
The mixed trends in agricultural output and input prices reflect broader economic challenges, including supply chain disruptions, fluctuating demand, and regional production variations. Ireland’s strong showing in milk prices highlights the country’s resilience in the dairy sector but also raises questions about the sustainability of such increases in a volatile market environment.
Agricultural Price Trends Across the EU
Preliminary Eurostat estimates for 2024 revealed an overall 2% dip in the average price of agricultural goods (outputs) across the EU compared to 2023. At the same time, the cost of goods and services consumed in agriculture (inputs) fell by 6%, signaling some relief for farmers grappling with production costs.
This decline follows a period of sharp price increases in 2021 and 2022, coupled with a more moderate rise in 2023.
Sector-Specific Price Fluctuations
The report highlighted significant variability in price changes across agricultural products:
Sharp Increases:
Olive oil prices jumped by 30%, driven by supply constraints and heightened demand.
Potatoes, including seed potatoes, rose by 12%.
Certain fruit prices increased by 7%.
Moderate Increases:
Cattle prices rose by 2%, while milk saw a modest average increase of 1% across the EU.
Declines:
Cereals experienced the steepest drop, falling 15%.
Eggs and pig prices declined by 8% and 7%, respectively.
Poultry prices fell 6%, while vegetables and horticultural products slipped by 2%.
Input Cost Adjustments
The report also highlighted shifts in the prices of goods and services consumed in agriculture:
Increases:
Seeds and planting stock, along with veterinary expenses, each rose by 3%.
Decreases:
Fertilizers and soil improvers saw a sharp 18% drop, while feedingstuffs declined by 11%.
Energy lubricants fell by 8%, and plant protection products and pesticides dipped slightly by 2%.
Ireland’s Exceptional Milk Price Surge
While the average milk price in the EU rose by just 1%, Ireland’s 15% increase underscores the sharp regional disparities in agricultural markets. The robust price rise in Ireland contrasts starkly with the declines seen in much of Southern and Western Europe, where markets for milk and dairy products faced greater downward pressure.
Outlook
The mixed trends in agricultural output and input prices reflect broader economic challenges, including supply chain disruptions, fluctuating demand, and regional production variations. Ireland’s strong showing in milk prices highlights the country’s resilience in the dairy sector but also raises questions about the sustainability of such increases in a volatile market environment.
