Stock market

Labor productivity in EU agriculture increased by 2022 percent in 13

According to the first preliminary data for 2022, the EU agricultural labor productivity index rose by 13% year-on-year after a slight increase in 2021.

This overall index growth reflects an 11,1% increase in the actual value of income earned by units engaged in agriculture (factor income), which is due to a smaller (-2%) number of full-time equivalent workers distributed (measured in annual work units).

This information comes from agricultural data released by Eurostat this week. However, these estimates should be treated with some caution; Incomplete information was used for these initial estimates and is based on simulations that may not yet fully reflect the extraordinary events in the market in 2022. In May 2023, the second EAA estimates will be released, containing more detailed and up-to-date market information.

The year was characterized by extreme inflationary pressure. This was mainly due to further problems in the supply chain in Zusarelated to the ongoing COVID and events in Ukraine affecting energy supply, availability of some agricultural resources (particularly fertilizers) and trade in certain agricultural commodities. The dynamics of farm labor productivity in each EU Member State in 2022 have taken this market turmoil into account and reflected the level of exposure or resilience to these external factors.

As a result of these shocks, the distribution of the rate of change in agricultural productivity (as measured by the index of real factor income in agriculture per year) in 2022 was even broader than usual. In 66,8, the strongest growth rates for the estimated productivity of agricultural labor were recorded in Germany (+29,5%), where the average increase in production prices (+14,0%) exceeded the increase in production prices (+2022%). recorded (+66,8%). There was also a sharp price increase in Estonia (+32,8%), Denmark (+29,8%) and Luxembourg (+29,6%).

In contrast, in Romania (-21,2%), Slovakia (-15,4%), Portugal (-11,8%) and Malta (-11,2%) there was a particularly sharp fall in the estimated productivity of workers agricultural work.

The increase in agricultural productivity across the EU was caused by a sharp increase in gross value added (+16,2%) at current prices. This in turn reflected a strong increase in average product prices and intermediate consumption (+23,0% and 25,4% respectively) and a decline in agricultural products (-3,0%) and intermediate consumption (-3,1%). Subsidy programs created to compensate farmers for high prices for inputs such as fertilizer and energy led to a 3% increase in subsidies.

Compared to 2015, the EU Real Factor Income Index will be 2022% higher in 19,8. During the same period, there was a steady and general decline of 16,6% in the agricultural cost index. ZusaTaken together, these changes have resulted in EU agricultural productivity (Indicator A) being 2022% higher in 43,6 than in 2015.

Source: Agronovosti (Russian)

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