CZECH AGRICULTURE: FALLING PRODUCTION, RISING INCOMES

Czech agriculture contracted slightly in 2024, with the value of agricultural production falling by 2.7% to CZK 172 billion. This is revealed by preliminary data from the Czech Statistical Office (CZSO), which shows the main causes of this decline and trends in various sectors of agricultural production.

Agricultural production is falling, but farmers’ incomes are rising

The value of crop production fell more sharply, falling by 5.2% to CZK 89.4 billion. This decline was mainly influenced by a reduction in the cereal harvest. However, livestock production showed a different trend, with a slight increase of 0.5%, reaching 70.5 billion CZK.

Despite the decline in overall output, farmers’ entrepreneurial income has increased to CZK 13.3 billion. However, it remains below the ten-year average.

Crops falling: cereals, fruit and vegetables hit hardest

Crop analysis shows a reduction in the production of wheat, rye and barley, with a consequent decrease in the value of cereal production by 8.9%. Industrial crops such as rape also fell by 9.2%. In addition, the CZSO reports a drop in fruit and vegetable yields, further aggravating the situation of crop production.

The livestock sector in the high and low

In the livestock sector, there were mixed signals. The production of cattle increased by 6.4% and that of milk by 2.4%. However, pig and poultry production fell by almost 4%, while egg production fell by as much as 10%.

On farm production, there has been an increase in the production of beef cattle, slaughter poultry, milk and eggs, while the production of pigs for slaughter has decreased.

Growing subsidies, especially for livestock

An important element in the value of agricultural production is state subsidies. In 2024, the total volume of subsidies for agricultural products increased by 8%, with a particularly significant increase for livestock, which grew by almost a quarter over the previous year.

The value of other production subsidies reached CZK 35.1 billion, an annual increase of 15.5%. This increase demonstrates strong government support for the agricultural sector, especially to offset difficulties related to declining crop production.

Falling production costs, rising wages

Another positive factor is intermediate consumption, namely the value of raw materials and services used for agricultural production, which fell by 3% to DKR 117.4 billion. The most important item in this category is feed, which accounts for almost one third of the total, followed by energy and lubricant consumption (17%).

Despite the sector’s difficulties, wages in the agricultural sector have risen by 2%, reaching 39 billion kroner, a positive signal for workers.

Entrepreneurial income recovering, but still below historical average

After a sharp decline in 2023, entrepreneurial income from agricultural activities increased by 22% in 2024. However, compared to the average of the last ten years, it remains below CZK 6.3 billion, confirming that the Czech agricultural sector has not yet fully recovered its losses from previous years.

2024 was a year of light and shadow for Czech agriculture. The decline in crop production, mainly due to reduced cereal harvests, has had a negative impact on the overall value of agricultural production. However, the animal husbandry sector has shown some stability and entrepreneurial income has returned to growth, although it has not yet reached past average levels.

Increased subsidies and reduced production costs are positive signals for the sector, but the future of Czech agriculture will depend heavily on crop performance in the coming years and government support policies.

In conclusion, despite a decline in crop production, Czech agriculture in 2024 showed resilience, with rising farm incomes and a strengthened livestock sector. Increased government support and lower production costs have provided some stability, but long-term recovery will depend on improving yields and adapting to market challenges. The sector must innovate and optimize resources to ensure sustained growth in the years ahead.

Sources: https://www.ceskenoviny.cz/