Milk Prices Down 27.3%: Czech Agricultural Producers See Ninth Consecutive Month of Declines Compared to Last Year
Producer prices in the Czech agricultural sector were 11.8% lower in August than a year earlier. The Czech Statistical Office (ČSÚ) released the figure on September 16. This marks the ninth consecutive decline. In July, the decline had been 13.0%. Compared to July, prices rose slightly by 0.3%.
“Agricultural prices have fallen year-over-year for nine consecutive months. In August, this decline amounted to 11.8%,” explained Jiří Šulc on September 16. He heads the Department of Price Statistics for Agriculture, Construction, and Services at ČSÚ.
The main factor driving this trend is livestock farming, where prices fell by 20.1%. Milk prices dropped by 27.3%, pork by 26.9%, eggs by 10.0%, and beef by 9.6%. In crop production, prices fell by 3.0%, with grains down 6.7% and potatoes down 7.7%. Fruit prices, on the other hand, rose by 6.0%. Poultry prices fell by 0.4%.
Chemicals and Wood Drive Industrial Prices
Industrial producer prices rose by 2.0% in August. In July, the increase was 1.6%. Compared with July, they rose by 0.4%. Chemical products rose by 12.1%, wood and wood products by 11.3%, base metals by 5.6%, and rubber and plastic products by 5.3%.
Two categories are holding prices back. Electricity, gas, and district heating cost 4.8% less than a year earlier. Food prices fell by 5.6%, and dairy products by as much as 15.8%. Processed meat cost 6.9% less. Excluding energy, industrial producer prices rose by 1.5%, following a 1.4% increase in July. Coke and petroleum products saw significant price increases compared to the previous month.
Construction is getting more expensive; advertising even more so
Prices for construction work were 4.4% higher than a year earlier. Construction materials rose by 6.8%. Business services cost 2.7% more. Advertising and market research rose by 12.1%, and employment services by 10.9%.
By European standards, the Czech Republic remains affordable. According to Eurostat, industrial producer prices in the EU rose by 5.6% year-over-year in July. In the Czech Republic, the increase was 1.6%; in Germany, 3.1%; in Poland, 3.5%; and in Slovakia, 2.7%.
For German buyers, the picture is mixed. Those purchasing Czech chemicals, metals, or wood face double-digit price increases. Those buying milk, meat, or grain, however, are negotiating from a position of strength. German dairies and meat processors are currently paying significantly less to Czech suppliers than they did a year ago. Investors planning to build plants, on the other hand, expect construction costs to rise by 4.4%. In 2026, the locational advantage lies in procurement, not in construction.
Sources: Český statistický úřad – ČSÚ (CS), Eurostat (EN).
SK, Frankfurt