Shopping in the supermarket has recently become more expensive – and that was well received by farmers. The business expectations of the industry remain rather subdued before their big start to the year in Berlin.
In view of the ongoing risks on the markets, German farmers are cautious about the year ahead. “The uncertainties are great,” said Farmer’s President Joachim Rukwied of the German Press Agency before the Green Week agricultural fair in Berlin. Prices for resources such as energy and fertilizer have risen massively and are still at a very high level. Fertilizers currently cost 3.5 times what they cost before the Ukraine war broke out. In addition, there is high volatility on the markets. “In this respect, it is necessary for the companies to have a certain amount of liquidity in order to finance the higher initial costs of production at all.”
The supply situation for fertilizers has relaxed a bit, at least on paper, explained Rukwied. “But the goods are often not at the farms yet. Then the further question arises as to whether the logistics also work.” There are definitely price fluctuations of around 15 percent for operating resources – on the other hand, the price quotations for plant products also fluctuate in this magnitude. “In the end, of course, you need a lucky hand to buy at the right moment and sell at the right moment.”
Looking at the fields, Rukwied said: “At the moment we have good stocks of winter grain and winter rape outside.” In the first half of December there were ten days with low temperatures. “Where there was no snow cover, the frost ensured good soil conditions.” Due to the relatively mild weather in many places recently, many plants have already shown a noticeable growth development. “But that also entails the risk that they will get hit again in the event of a cold frost.”
Fair Green Week
The situation in the food industry is also a topic at the Green Week, which will take place again in the Berlin exhibition halls from January 20th to 29th after a two-year Corona break. “We’re looking forward to the Green Week,” said Rukwied. “At the Green Week you can smell, see, feel, taste and enjoy food.” The fair shows the diversity of agricultural production. “It will be very exciting for the visitors, it will be an experience.” The motto of the German Farmers’ Association at the fair is “Protect the climate, preserve biodiversity, secure food”.
Regarding the relationship between farmers and society as a whole, Rukwied said: “We must continue to work on mutual understanding.” The industry needs appreciation in particular for the added value for more sustainably produced domestic products. “They need a higher price. That’s important so that the companies can continue to guarantee food security.”
In view of the high inflation, Rukwied countered the impression that high-quality food could become a luxury. “We still have a relatively small share of the total expenditure on food in a household when it comes to spending.” Most recently it was about ten percent, which is a low value from a global perspective. “It can increase a bit, but groceries can still be bought cheaply in Germany.”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
