Are agricultural prices too high in Europe?

Question

Are agricultural prices too high in Europe?

Answer 1

In general, and probably irregardless of where you are, food statistically costs less today than it has ever cost. That said, always beware of statistics as they can be used to predict, promote, or prove most anything. Food is very costly, and prices fluctuate in a market that is affected by many outside factors. Just look at what happened to the dairy-corn (feed) industry when ethanol was the new "golden egg" in the fuel-oil problem and corn was diverted from it's old routes.

Answer 2

No. While food for consumers is often very expensive, the price received by the farmers is very low, sometimes even below the cost of production. The agrofood industry and the retail sector receive up to 85% of the final price paid by the consumers, while farmers receive only 15% of it. Over the last decades, the prices of agricultural products sold by farmers have decreased dramatically, while the price paid by consumers have kept increasing. This is because the agrofood industry and the retail sector have increased their margin, at the expense of both the consumers and the farmers.