On Monday, the first edition of the ‘Day of Agriculture’, organised by the Service of Rural Economy (SER), took place in Mertzig. The organisation used the opportunity to present a review of the past two years and an outlook on the future of agriculture in the Grand Duchy.
The SER analysed figures from a sample of 560 businesses in 2022, to compile a precise overview and extrapolate the situation of the country’s nearly 1,300 businesses.
According to the SER, 2022 was a good year as producers were able to demand elevated prices for their work. Compared to 2021, “ordinary results” increased by 90% on average to reach around €118,000 per business. This is also a significant improvement compared to the average of the past five years, which was set at €62,600.
The SER attributes the positive developments primarily to the elevated prices, particularly the ones registered in the most important pillar of Luxembourg’s agriculture, namely dairy production.
Looking to 2023, the SER forecasts a decline of 9% to €106,900 per business, which is still considered a positive result. Nevertheless, winemakers are expected to face a particularly tough year, according to the organisation.
The SER praised farmers ability to save money by using fertiliser more efficiently, especially as costs in this area have risen. Thanks to government aids and new agricultural policies, the beef sector was able to improve its results.
Luxembourg’s new agriculture Minister Martine Hansen was also present at the event and underlined the importance of opening up new vistas for young farmers and winemakers. She also pledged to keep an open dialogue with representatives from the sector.
Looking to the future, agriculture officials estimate that markets rocked by high energy and fertiliser costs will stabilise again. Thanks to the EU’s efforts to help export produce from Ukraine, the price of grain and oil has now settled at around 10% above the rate preceding the war.
While the ‘Green Deal’ of the EU Commission contributed to a rise in production costs, a coincidental increase in sales prices has been interpreted as part of a general continuity of improved results, according to the SER.
