The European Commission has released its latest EU Agricultural Outlook report, which presents the projections for EU agricultural markets until 2035. The report predicts slower productivity growth amid various challenges ranging from climate change to the availability and affordability of inputs, while EU agriculture transforms towards more sustainable production systems.
Based on the report, EU agriculture is expected to maintain a high level of productivity until 2035 to support positive trade performance, particularly for high-value commodities. The EU is projected to maintain its self-sufficiency in cereals, meat, and dairy, and EU agri-food exports will remain an important contributor to global food security. The value of EU agricultural production is expected to increase steadily, mainly due to cereals, dairy, and fruits and vegetables. However, input costs such as fertilizers, energy, and feed are likely to remain high, the report says. The overall environmental impact of EU farms is expected to improve, with a reduction in both greenhouse gas emissions and nitrogen surplus. Labor productivity remains the main driver of overall EU agricultural productivity, contributing to an increase in real income per agricultural worker.
by Joji Xavier
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