The Russian invasion of Ukraine has significantly disturbed global agricultural markets, particularly as Russia and Ukraine have been major exporters of grains, wheat, maize, oilseeds (particularly sunflowers) and fertilisers. This has added further instability to markets, resulting in sharp price rises for key agricultural products and inputs.
In the first quarter of 2022 (Q1 2022), the average price of goods and services currently consumed in agriculture (i.e. inputs not related to investment) increased by 9.5% compared with the fourth quarter of 2021 (Q4 2021), underpinned by strong rises for fertilisers and soil improvers (+21.2%), energy and lubricants (+17.4%) and animal feedingstuffs (+9.2%). Meanwhile, the average price of agricultural goods as a whole (output) increased by 6.0%.
This information comes from data on agricultural price indices published by Eurostaton July 1, 2022.
Among the EU Member States, the largest rate of increase in the average price of agricultural output was recorded in Lithuania (+18.1 % in the first quarter of 2022 compared with the fourth quarter of 2021), followed by Romania (+14.4 %) and the Netherlands (+13.9 %). Croatia (-5.8 %, driven by the fall in the price of forage plants), Slovakia (-0.8 %) and Greece (-0.4 %) were the only countries with a price index decrease in this period.
The sharpest rate of increase in the average price of inputs not related to investment was also recorded in Lithuania (+24.5 %), followed by Latvia (+18.9 %) and Slovakia (+14.6 %). All Member States recorded rises, but the smallest rates of increase were in Malta (+4.7 %), Slovenia and Portugal (both +6.2 %).
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- Comparing price indices between successive quarters can only be indicative of actual price changes, as they also refer to the quarterly prices and weights of the base year.