Healthy Foods Have Risen 36% in Price Across Europe. UN Report Blames EU Agricultural Subsidies

A United Nations report shows that between 2021 and 2025, the cost of a healthy diet in Europe rose by 36%, a faster pace than the global average. The document, published on Tuesday by the Food and Agriculture Organisation (FAO) under the title State of Food Security and Nutrition, argues that the way the European Union allocates agricultural subsidies has contributed to rising prices for fruit, vegetables, and other foods essential to a balanced diet.

According to the report, as cited by POLITICO, whilst inflation driven by the COVID-19 pandemic, the war in Ukraine, and possibly the Middle East crisis has pushed up food prices in general, agricultural policies have also played a role. Financial support directed primarily towards cereal crops and the meat sector has made vegetables, fruit, and legumes relatively more expensive to produce. David Laborde, one of the report's authors and FAO's Director of Agrifood Economics, describes this phenomenon as an "indirect tax".

The Common Agricultural Policy among the causes of the problem

The report identifies the Common Agricultural Policy (CAP) — the programme through which the EU has funded agriculture since the 1960s and one of the bloc's largest funding mechanisms — as being partly responsible for this situation. However, Laborde believes that an even greater effect stems from the lack of investment in research and innovation to reduce production costs for fruit and vegetables, crops that require a great deal of manual labour. "This has increased productivity in some sectors. But we have done almost nothing for legumes and beans," he said.

According to the FAO's methodology, the minimum cost of a healthy diet for the average European is estimated at $3.97 per day, one dollar more than in 2021. The increase in Europe exceeds the global average, where the cost of a healthy diet rose by 25% over the same period.

Fruit, vegetables, and legumes account for nearly 60% of the cost of a healthy meal, whilst cereals such as wheat and rice contribute just 13% to the total cost. Nevertheless, at a global level, the largest share of agricultural subsidies continues to go towards cereals, sugar, dairy products, beef, and crops used for animal feed.

FAO calls for investment and a shift in priorities

A study published in the journal Nature shows that 80% of the financial support given to EU farmers goes directly towards livestock farming or feed production. According to Laborde, the subsidy system calculated on the basis of cultivated land area discourages farmers from growing vegetables for human consumption.

The FAO recommends redirecting subsidies towards fruit and vegetable producers, as well as greater investment in technologies that reduce the need for manual labour in this sector. Further recommendations include reducing food waste, supporting farmers through easier access to fertilisers and other agricultural resources, and greater price transparency throughout the food supply chain.

The next battle: the Common Agricultural Policy beyond 2028

The European Commission recently presented a Protein Action Plan, aimed at reducing Europe's dependence on feed imports and boosting the production of legumes for human consumption. The funding of these measures, however, depends on negotiations over the future Common Agricultural Policy for the 2028–2034 period, one of the most significant European debates in the years ahead.

David Laborde argues that European policymakers must move away from traditional approaches: "Europe built its agricultural subsidy system for historical reasons, very different from the current objective of ensuring that the population has access to large quantities of fruit and vegetables."

The European Commission declined to comment on the conclusions of the FAO report. A spokesperson for the institution stated that the European executive does not intend to dictate what citizens should eat. With regard to the Protein Action Plan, the Commission notes that it includes consumer information measures such as product origin labelling, sustainability criteria for public procurement, and campaigns highlighting the benefits of consuming legumes.