Development Trends and Prospects


Slovak agriculture passed through a difficult development after the year 1990, when it had to adapt to conditions of the market economy and restrictions of public support. During this period agricultural production decreased and in this way adapted to a domestic demand influenced by the lower purchasing power of population and by changes that occurred in the structure of consumption and in consumer behaviour of the population. Since the year 1995 the level of production has stabilised.

According to preliminary data, in 2020, agriculture achieved a positive economic outturn, i.e. profit before tax of €63.2 mil . It decreased by €3.4 mil. on a year-on-year basis (5.1%) due to a decrease in sales, particularly in animal production, as plant production sales increased. Subsidies, which act as a stabilizing component of agricultural enterprises’ incomes and without which most agricultural enterprises would be loss-making, played a key role in the economy for agricultural enterprises. Almost 72% of the financial subsidies for Slovak agriculture was provided from the EU and a part of the expenses was financed from Slovak Republic’s state budget. The share of the total subsidies in revenues reached 30.1% and the share of direct payments in revenues reached 14.9%. The differences between the level of Slovak agriculture subsidies and that of the EU-15’s agriculture persisted.

Basic agricultural economic indicators in mil. € current prices

In 2020, agricultural enterprises, similarly to previous years, optimized their costs, and in an effort to achieve a more favourable economic outturn and total production efficiency, continued to reduce inefficient sectors. The economy of product industries was decisive in the changes in the production structure. Revenues (€3,015.5 mil were slightly higher than costs (€2,952.3 mil. Even with the decrease in the prices of supplies to agriculture (3.6%), the income costs increased and reached €97.8. In 2020, the disposable agricultural land of agricultural enterprises allowed producing sufficient domestic produce again, but the prices of the production of the individual commodities were not sufficient to cover production costs. Agricultural enterprises ensured the sale of their production, similarly to previous years, by hedging though forward agreements on the future sale of production at pre-agreed prices, thus insuring against risks related to volatility in commodity prices.

Revenues, costs and economic outturn of agricultural production, in € mil.

Source: Report on Agriculture and Food Sector in the Slovak Republic for 2020 - Green Report.