An average year, marked by abundant rainfall

The first estimates of farmers’ income for the year 2024 made by Statbel ^[1], the Belgian statistical office, have been submitted to the European Commission (Eurostat).

Weather conditions, particularly the abundance of rainfall, had a definite impact on the economic situation of Belgian agriculture in 2024. They disrupted all stages of field crop production, with significant repercussions for both sowing and yields. Price rises could not compensate the loss of income.

However, net value added^[2] in the agricultural sector should increase by 4.2%. On the one hand, the production value^[3] of the agricultural sector should decrease by 0.7% compared to 2023, but on the other, intermediate consumption^[4], should also fall by 2.7%.

Field crops

Cereal crops have been badly hit by the rain that has fallen in Belgium. Winter cereal acreage has dropped to levels not seen since 1999, and yields have also plummeted.

Despite the increase in spring cereal sowing, the volume of cereal production is estimated to be 18.7% below the 2023 level.

The value of cereal production should fall by 20.1% in 2024, given the decrease in prices for the 2024-2025 season (-1.7%).

The production value of sugar beet should also decrease sharply, by 23.2%. The area sown has certainly increased, but yields have fallen and sugar content has remained below reference levels. The decrease in production is thus estimated at 7.5%. If we add to this the fall in white sugar prices, prices for this season would be 17.0% lower than for the 2023-2024 season. Potato acreage has also increased in 2024.  However, this expansion is limited by poor planting and emergence conditions. As far as prices are concerned, contracts have been revalued while prices on the open market are estimated to be lower than in the previous season. Based on the data available on 30 October, the value of potato production should be 1.6% higher than in 2023.

Horticulture

In horticulture, the production value of vegetables is estimated to be 9.3% higher than in 2023, thanks to higher producer prices.

For fruit, a decrease in value is expected (-17.1%). Indeed, the forecasts are pessimistic for apples and pears. The lack of sunshine in the spring and the hailstorms cast a shadow over the harvest prospects. The result would be a 24.1% drop in fruit production compared to 2023. This decrease should be partly offset by the rise in prices, estimated at 9.2%.

Animals

The overall value of animal production should remain stable, with the positive volume effect offsetting a negative price effect. Bovine production should rise by 3.5% and producer prices by 4.4%. The value of bovine production is currently estimated to be 8.1% higher than the previous year.

For the pig sector, the rise in volumes (+3.2%) was not enough to offset the 9.4% fall in prices. A similar trend can be observed at European level, with a market that is continually adjusting its prices downwards to strengthen its export competitiveness. However, European prices remain higher than those of the main reference markets, such as the United States, Canada and Brazil, maintaining strong pressure on producers.

Animal products

The production value of animal products should rise by 3.2% compared to 2023. The dairy sector should keep its annual production stable thanks to a good first semester; the value of milk production, meanwhile, should increase by 5.6% thanks to higher milk prices.

Finally, the production value of the egg sector is set to decrease as a result of the reduction in the producer price (-11.0%).

[1] In cooperation with regional authorities and experts.

[2] Net value added: This is the wealth created by an enterprise or sector after deducting intermediate consumption from production value. It represents gross value added minus depreciation and provisions. In other words, it is the value that the enterprise adds to the goods and services it purchases and uses in its production process.

[3] Production value: This is the total value of goods and services produced by an economic branch or sector over a given period. It includes the value of finished products and services provided, as well as changes in inventories.

[4] Intermediate consumption: These are goods and services consumed or transformed during the production process. This includes raw materials, energy, outsourced services, etc. In agriculture, this includes seeds, fertilisers and maintenance services.