Social relations and views on food production, agriculture and rural areas are changing rapidly

The modern consumer, the citizen and the public expect stakeholders in the food-supply chain and the State to provide safe and quality food, protect natural resources, respond adequately to climate change, and keep rural areas viable.

The strategic framework and the main objectives for agriculture and rural areas are laid down in the resolution entitled "Our food, rural areas and natural resources beyond 2021". The essence of the new approach is a targeted strategic planning of public support to food production and processing and to rural development, taking into account the natural features of the Slovenian countryside and actual needs.

Given the natural and structural conditions, Slovenian agriculture can only be competitive and resilient if is focuses on greater added value. This requires knowledge, appropriate production technologies, and a modern and competitive food-processing industry. Particular emphasis is placed on the protection of the environment and nature and on the conservation of agricultural areas, which should become an asset rather than an obstacle to management. Knowledge, innovation, entrepreneurship and integration should become driving forces for the progress of Slovenian food production and processing and of the rural space.

Agriculture in figures

Economic growth in Slovenia in 2022 stood at 2.5% and slowed down compared to the previous year. In 2022, the downward trend in agriculture’s contribution to the share of total gross value added and employment continued. Agriculture, together with forestry, hunting and fisheries, thus contributed 2.1% to total value added in 2022 and 6.3% to total employment.

2022 was unfavourable for agriculture for the second year in a row. According to provisional statistics, the volume of agricultural production decreased by a small percentage. The volume of crop production was lower by a percentage compared to the previous year, while livestock production was maintained at the level of the previous year. The year 2022 was most marked by drought, which severely affected the harvest, in particular some crops.

Self-sufficiency rates were higher in 2022 than in the previous year for fruits, meat and honey, and decreased for cereals, potatoes, vegetables, milk and eggs. Domestic production exceeded domestic consumption of milk (130%), beef (116%) and poultry meat (109%). The level of self-sufficiency in cereals decreased to 73%, mainly due to poor maize harvests. In the case of potatoes and vegetables, reduced domestic production contributed to lower self-sufficiency rates (36% and 38%). With increased domestic production, the self-sufficiency in fruit (29%) was higher than in the previous year and slightly above the average level of the last five years. The self-sufficiency rate in pigmeat decreased to 41% due to a noticeable decline in production.

The prices of agricultural products increased significantly at the aggregate level for the second year. Compared to 2021, the prices increased by 24.3% (14.2% of real increase). While crop prices (particularly cereals, potatoes and oilseeds) increased, the prices of animal products (in particular cow’s milk, cattle, edible eggs and pigs) increased significantly. Budget payments for agriculture amounted to €455.3 million in 2022, representing a 13-percent increase compared to 2021. The primary reason for the increase in payments is the higher volume of national funds allocated for various compensations and extraordinary payments.

Foreign trade in agri-food products increased in 2022. The value of exports increased by 13% and of imports by 20%. In 2022, Slovenia remains a net importer for most customs tariffs of agri-food products.

In 2022, companies in the food processing industry were marked by pronounced cost pressures affecting the relations and functioning of the food system as a whole. A period of marked instability continued, which started with significantly changed conditions of the COVID-19 pandemic and continued as a result of developments in Ukraine and related turbulence in the energy and fertiliser markets, and cereals and oilseeds markets. In the 2022 financial year, the total net profit of the food processing activity amounted to €164.2 million (18.2% of real growth) and all activities ended the financial year with a positive net profit.

Annual reports on the state of agriculture

The annual reports prepared by the Agricultural Institute of Slovenia, in cooperation with the Ministry of Agriculture, Forestry and Food and with its financial support, gather the most important production and economic results on Slovenian agriculture, food, forestry and fisheries. The results are prepared based on the data from the Statistical Office of the Republic of Slovenia, the Ministry of Agriculture, Forestry and Food and other official sources available by 31 May of the current year for the previous year for which the report is being prepared.

EU’s common agricultural policy

The common agricultural policy (CAP) was set up in the 1960s to provide people with good and affordable food and to enable farmers to earn a decent living. It is a dynamic policy that adapts, by means of reforms, to meet the new challenges and needs of society. In addition to the provision of food, attention is given to sustainable development, the fight against climate change and the maintenance of a vital countryside.

CAP financing contributes to a greater stability of farm income, provides market assistance and supports the wider rural economy by taking into account the needs of individual countries.

The Strategic Plan for the Common Agricultural Policy for the 2023–2027 period is the key programming document for the implementation of the common agricultural policy in Slovenia in the 2023–2027 period. It pursues the following headline targets:

• competitiveness and resilience of the agricultural sector;
• environmental and climate protection; and
• harmonious rural development.

With the 2023–2027 Strategic Plan, Slovenia will ensure long-term food security, green transition and sustainable development of Slovenian agriculture, forestry, food industry and rural areas. In the context of food and energy costs and climate and environmental challenges, the Strategic Plan places key emphasis on the sustainable production of food throughout the country and the promotion of self-sufficiency, highlighting the importance of all areas and agricultural holdings regardless of their size, activity or market orientation. This overarching principle provides answers to the challenges of food security and to future environmental and climate challenges.

Unlike previous programming periods, the current Strategic Plan strategically addresses both pillars of the common agricultural policy (the first pillar, which includes direct payments and sectoral measures, and the second pillar, which includes rural development measures). This approach brings a new dimension and has a positive impact on synergies and complementarities between interventions, while increasing the impact of both pillars in achieving the objectives of the common agricultural policy.

Almost €1.8 billion is available to implement the measures:

• €700 million for the first pillar – direct payments, wine and beekeeping sectors (EU funds);
• €1.1 billion for the second pillar – rural development (half from the EU budget and half from the budget of the Republic of Slovenia).