Preliminary Eurostat data reveals the phenomenon after a consecutive increase between 2019 and 2022

According to the initial estimates for 2023 from the economic accounts for agriculture (EAA), the agricultural labour productivity index in the EU is projected to have decreased by 6.6% compared to the previous year. This downturn is attributed to a 7.9% reduction in the real value of income generated by units engaged in agricultural production activities and a further decrease of 1.4% in the volume of agricultural labour.

Data published by Eurostat indicates that 19 EU countries experienced a decline in agricultural labour productivity in 2023. Estonia (-57.9%), Sweden (-31.7%), and Ireland (-30.3%) saw the steepest rates of decline, while Belgium (+31.0%), Spain (+11.1%), and Portugal (+9.9%) recorded increases. These variations were influenced by factors such as lower prices of fertilizers and higher prices of specialized products like olive oil and potatoes.

Despite the decline in 2023, the gross value added by the EU's agricultural industry remained relatively steady (+0.9%) compared to the sharp rise (+15.1%) observed in 2022. This stability is attributed to unchanged prices for both output and intermediate consumption and only slight decreases in volumes for output and intermediate consumption.

The index level of EU real factor income in 2023 remained 10.1% higher than in 2015, despite the downturn. The EU agricultural labour productivity (Indicator A) was 34.6% higher in 2023 than in 2015, showcasing the industry's resilience over the years.