Brussels, 20/12/2004 (Agence Europe) - Eurostat's initial estimates for agricultural revenues for 2004 indicate an increase of 3.3% from 2003 to 2004 in the EU of 25. This growth can be explained in particular by the results in the new member states, where agricultural revenues have grown by an average of 53.8%, bearing witness to the positive impact of EU accession on the agricultural sectors in these countries through access to the single market and the implementation of the CAP. Eurostat indicates, however, that the agricultural revenues of the EU of 15 have only risen by 0.8% in 2004.
According to Eurostat, the increase in agricultural revenues in the EU of 25 is a result of the simultaneous increase of 1.8% in real agricultural revenue and a reduction of 1.5% in the volume of agricultural labour. The other contributing factors in the increase are: - the considerable increase in harvest in comparison with 2003, particularly in the cereals, oleaginous fruits, wine, olive oil and potato sectors. The total volume of harvests went up by 12.5%, which compensates for the drop of 8.4% in the real prices of agricultural products; - a rise in the real value of animal production, particularly for pork and poultry, 6.9% and 4.6% respectively; - the substantial increase in the level of subsidies granted to the agricultural sector in the new member states on the eve of the enlargement (1.2 billion euros to 3 billion euros). These favourable elements compensated overall for the sizeable increase in the input costs, particularly the increases in the price of oil, energy, lubricants and fertilisers.
The Commission emphasised that the increase in agricultural revenues in the EU of 15 reflect the long-term trend, only having risen by 0.8% from 2003 to 2004. Since 1980, agricultural revenues have risen by 48% in real terms in the EU of 15, and by 24% since the implementation of the CAP reforms in 1992.
Accession has given substantial impetus to agricultural revenues in the new member states and they have risen by 53.8% since last year. According to the Commission, the two factors behind this substantial increase in agricultural revenues are: - the pronounced increase in revenues generated by the best market conditions (which explains 60% of the increase) and the granting of almost entirely decoupled aid (which explains around 40% of the increase); - the Czech and Polish agricultural sectors are those which have done best out of the enlargement, with increases in agricultural revenues of 108% and 74% respectively.