Climate goals, economic pressure, and changing market conditions are having a major impact on European agriculture. Recent data from Eurostat shows how the sector is adapting. Production, sustainability, and labour market trends paint a picture of a sector in motion.
In 2023, the agricultural sector contributed €537.1 billion to the EU economy, accounting for 1.3% of the EU’s GDP. A significant portion of this value came from crops (51%) and animal products (39.9%). At the same time, the sector was responsible for 10.5% of Europe’s total greenhouse gas emissions in 2022. This highlights the tension between economic performance and environmental goals.
The new Common Agricultural Policy (2023-2027) allocates 40% of subsidies to climate-friendly initiatives. Small and medium-sized farms receive additional support to transition to sustainable methods. However, extreme weather events, such as droughts and floods in 2023, continue to pose significant challenges for the production of grains and potatoes.
The area dedicated to organic farming expanded to 16.8 million hectares in 2022, representing 10.5% of Europe’s total agricultural land. Countries such as Austria (27.2%) and Estonia (23.4%) lead the way. However, Malta (0.6%) and Ireland (2.2%) lag far behind. The growth of organic farming reflects the increasing demand for more sustainable production methods across Europe.
Between 2010 and 2020, the number of farms declined by nearly 25%, particularly among farms smaller than 5 hectares. At the same time, large farms of over 100 hectares now manage more than half of the total agricultural area, despite representing only 3.6% of all farms. In 2021, 8.6 million people worked in the agricultural sector, a 22% decrease over the past decade.
Data from Eurostat shows that European agriculture is adjusting to changing conditions. Sustainability goals, a shrinking number of farms, and extreme weather events present significant challenges. Yet, progress is also evident, such as the growth of organic farming and innovative investments in sustainability.
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Source: Eurostat