EU agricultural markets are showing “positive signs of stabilising as input costs have steadily declined over the past months and food inflation has returned to a moderate rate” – that’s according to the European Commission.

That’s a relief for farmers after years of volatility.

But prices remain 32 percent higher than in 2020.

The European Commission‘s ‘short-term outlook report for EU agricultural markets’ presents the latest trends and prospects for the agriculture sector

Despite growth potential, adverse weather, geopolitical tensions and plant diseases are all real and current risks to the market, the European Commission warns.

There are also concerns about fertiliser. Although the market is “gradually stabilising”, farmers may continue to struggle to afford it due to declining arable crop prices.

Lower crop yields this year may cause cash flow problems for arable crop farmers, potentially affecting fertiliser purchases next Spring, according to the report.

For dairy farmers, the European picture is also one of improved but mixed conditions after recent difficult years.

“The recovery of consumer demand for dairy products in general remains cautious and mixed among different dairy commodities.”