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Farmgate prices and processing costs in 2025: who absorbs the difference
MeatMilk

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Meat.Milk

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2026 January 28

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In 2025, prices of agricultural raw materials for meat and dairy remained at relatively high levels across the European Union. According to European Commission data, the price of raw milk was maintained within the EUR 50–52 per 100 kg range, while prices for pork and poultry recorded moderate variations compared to 2024.

At the same time, processing costs continued to rise. Eurostat data show that energy prices for industrial users and labour costs remained above historical averages, compressing processors’ margins. The gap between raw material prices and the final price accepted by consumers has become increasingly difficult to absorb.

From an economic standpoint, the pressure is unevenly distributed. Retailers show resistance to price increases, while consumers are more cost-sensitive, shifting the burden of adjustment within the supply chain. Processors with underutilised capacity or lower efficiency are the most affected.

From a legislative perspective, competition rules and consumer protection regulations limit the rapid transfer of costs. Looking ahead to 2026, economic balance will depend on processing efficiency and the renegotiation of contractual relationships, rather than on the ability to raise final prices.

(Photo: Freepik)

 

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