While the Greek government steadfastly refuses to lower VAT on food, dismissing references to EU directives as misinformation, prices for fresh products such as meat are soaring. Beef, in particular, is edging toward luxury status, with consumers paying up to 50% more than last year. Market insiders warn that prices could reach 20 euros per kilogram by the end of 2025—a more than twofold increase compared to 2024.

Four Factors Driving Price Hikes

Industry observers point to four key reasons behind the sharp rise in beef prices. Reduced domestic production, growing demand both locally and abroad, the absence of a coherent state plan to revitalize Greek livestock farming, and the gradual exit of young people from the sector all contribute to escalating costs.

EU policies, particularly the “Green Transition” under the new Common Agricultural Policy (CAP), further limit production to reduce greenhouse gas emissions from cattle, prompting a reliance on imports from South America.

EU Policies and Global Demand

Cattle emit methane, a potent greenhouse gas, making them a target in Europe’s environmental agenda. As production decreases, imports from Argentina and Brazil are expected to fill the gap under EU-Mercosur trade agreements. Meanwhile, demand from non-EU markets, including the UAE, adds additional pressure on prices.

The Greek Livestock Challenge

A lack of strategic planning in Greek animal husbandry has left domestic production shrinking. The profession’s high costs, coupled with bureaucratic obstacles and limited support, discourage young people from entering or remaining in the field. Without intervention, experts warn, beef prices could rise even further, potentially reaching 25 euros per kilogram.

Implications for the Market

Producers emphasize that Greece can cover only 15–20% of domestic beef demand, leaving the market largely determined by imports. Consumer advocates describe the situation as the gradual collapse of the primary sector, warning of long-term economic and social consequences if policy adjustments are not implemented promptly.