Czech Agricultural Prices Continue to Decline

According to data released by the Czech Statistical Office, Czech agricultural prices have experienced a further decline. Prices fell by 13.8% year-on-year in June and nearly 1% month-on-month. Meanwhile, prices in the industrial sector experienced a year-on-year increase of just under 2%, though they decreased by 0.3% month-on-month.

This decline in agricultural prices is the latest in a series of price drops that began in December 2020. In May 2021, the price of farm products fell by 10.2%, marking the first price decrease since February of that same year.

The price decline was most notable in plant production, which decreased by 25.7%. Specifically, the prices of oilseeds fell by 40.5%, while cereals decreased by 30.4%. Prices for fruit were reduced by 5%, while fresh vegetables saw a significant increase in the cost of 55.9%.

In contrast, animal production saw higher prices, with eggs increasing by 31.1%, pork by 25.4%, and poultry by 11.1%. Milk prices decreased by 0.5% and cattle prices by 2%.

The price decline is expected to continue, though the decrease in agricultural prices is predicted to slow down in the coming months.

This price decline concerns Czech agricultural producers, who are struggling to maintain profitability. Further support for the industry may be needed to ensure its survival.

Rise in Construction Prices

In contrast to the agricultural sector, prices for construction have risen. Construction prices increased by 6% year-on-year and by 0.1% month-on-month. Meanwhile, prices for market services for businesses increased by 6.1% year-on-year, though there was a slight decrease of 0.1% month-on-month.

Impact on Industry

The drop in agricultural prices has affected the industrial sector as well. Prices have been slowing down since October 2020, and the year-on-year price increase is the lowest since February 2021. In June, electricity, gas, steam, and air conditioning prices increased by roughly 20%, while coal and lignite prices increased by 69.3%. Other non-metallic mineral products saw a price increase of 13.7%. In contrast, prices for coke and refined petroleum products decreased.

Overall, the decline in agricultural prices concerns the industry and the economy. Further measures may be needed to support and ensure the farm sector’s stability.

Price Changes by Sector

The decline in agricultural prices has also impacted other sectors. In the construction industry, prices for labor increased by 6% year-on-year, while materials and products increased by 1.2%. In the service industry, prices for employment services increased by 22%, while programming services increased by 9.5%. Advertising and market research services increased by 7.8%, while prices for real estate services increased by 7%. Ground transportation services saw an increase of just under 5%.