The European Union's latest agricultural data for the third quarter of 2023 portrays a noticeable downturn in agricultural prices, marking a stark reversal from the prior robust growth trend. Eurostat's statistics highlight a notable decline in prices, particularly in countries specializing in cereal and milk production, such as Bulgaria and Hungary.

According to Eurostat, the average price farmers received for their agricultural products witnessed a substantial 9% drop compared to the same period last year. Additionally, non-investment agricultural input prices plummeted by 11% during this quarter, marking an acceleration in the rate of decline from the preceding quarter of 2023.

The drastic price fluctuations depict a substantial shift from the peak agricultural output prices observed in the third quarter of 2022. Following a period of rapid increase, prices exhibited a significant slowdown and subsequently nosedived by 9% in the third quarter of 2023, underscoring a shift in global agricultural markets towards stabilization.

This decline, however, reveals significant contrasts among specific agricultural products. Cereal prices witnessed a sharp fall of 32%, followed by a considerable 15% drop in milk prices. Conversely, olive oil saw a substantial 73% surge, followed by notable hikes in plant materials (50%), potatoes (48%), and sugar beet (44%).

In terms of agricultural non-investment costs, fertilizers and soil improvers faced a substantial 36% decline, alongside declines in energy and lubricant prices (18%) and animal feed costs (12%).

Notably, Bulgaria and Hungary experienced the most considerable price drops in agricultural products, with Bulgaria facing a substantial 28% decrease and Hungary witnessing a 26% decline compared to the same quarter in 2022. Conversely, southern countries like Greece, Cyprus, and Portugal observed notable price increases, attributed primarily to soaring olive oil prices.

Eurostat's report indicates that 21 out of 27 EU member states observed a decline in agricultural product purchase prices, signifying a widespread trend in the EU agricultural market.