By Antonella Bassani, Holger Kray, and Sameh Wahba
As economies develop, it is often assumed that agriculture becomes less relevant—a small slice of GDP and a shrinking share of employment. But evidence from Europe and Central Asia tells a different story.
Across countries stretching from Portugal to Uzbekistan, agriculture and the broader agrifood sector remain essential pillars of economic development, employment, trade, and rural vitality. Agriculture has not disappeared as countries have grown richer; instead, it has evolved into a dynamic, integrated system that touches many parts of the economy.
Agrifood creates millions of jobs, most of them beyond the farm gate. Today, primary agriculture directly employs around 8.7 million people in the European Union (EU) and still more across the wider Europe and Central Asia region. In Central Asia, agriculture remains a key source of rural employment.
However, farming is just the starting point. For every person working in a field, there are several more working in processing plants, trucks, supermarkets, research labs, restaurants, and export companies. A vibrant farm sector underpins entire networks of off-farm jobs, driving economic activity in both rural and urban areas. It is estimated that the full agrifood system—including input suppliers, food and beverage manufacturing, logistics, wholesale, retail, and food services—accounts for one in ten jobs or more in many of these economies. In Uzbekistan, agriculture and food processing together account for around 25% of total employment. And even in more advanced economies like Poland or Hungary, food industries and food retail remain major employers—especially in rural regions.
Agrifood is a major contributor to trade and innovation. Agricultural exports have become an engine of growth for many economies across Central Asia and Eastern Europe. Kazakhstan, in particular, has emerged as a major grain exporter. Ukraine’s agricultural sector, even amid Russia’s invasion, remains a crucial supplier to global food markets.
Innovation is driving this success. From precision agriculture and digital farming in EU member states to investments in irrigation technologies and modern food processing in Central Asia, agrifood is rapidly modernizing. The result is higher productivity, better quality, and stronger value chains, which translate into new opportunities for workers and businesses across the region.
Agriculture sustains rural communities and regional development. In many parts of Europe and Central Asia, agriculture remains the backbone of rural economies. Beyond its contribution to food production, it anchors rural livelihoods, maintains landscapes and ecosystems, and supports essential services.
Indeed, strong rural economies depend on vibrant agriculture and food sectors. A notable example is horticulture in Uzbekistan. The World Bank-supported Horticulture Development Project significantly boosted the sector’s productivity and profitability. This initiative created over 34,500 permanent jobs—nearly 40 percent employing women—and an additional 22,000 seasonal jobs, of which 75 percent were filled by women. Additionally, the project facilitated over $300 million in concessional loans to farmers and agribusinesses, helping more than 5,000 enterprises expand their operations, modernize production, and increase employment capacity. Investing in agriculture and food is therefore not just about food security, it is about balanced regional development, poverty reduction, and shared prosperity.
The bottom line: Across Europe and Central Asia, agrifood remains a strategic sector for jobs, growth, and resilience. It feeds nations. It drives innovation and exports. It sustains rural areas. And it creates employment opportunities for millions on and off the farm. The future of agriculture in Europe and Central Asia is not about decline, but about transformation, opportunity, and impact.
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