agriculture
Peasants tense in the political field
Before the industry show at Green Week, business is difficult for many farmers. There are no big protests like a year ago. Shortly before the federal election, there is a lot at stake again.
A year ago, angry farmers rolled through the republic in tractors. And this time too, farmers are once again taking a political stance at the Green Week trade fair in Berlin. Because the federal election campaign is underway. “We need a real new start in agricultural policy,” said farmers’ president Joachim Rukwied to the German Press Agency. At the food industry’s big start to the year on Friday, the industry sees a persistently difficult business situation – and is also appealing to supermarket customers.
“The engine continues to stutter, unfortunately that’s the case,” said Rukwied. “In the case of grain, the stuttering has actually become more pronounced because the prospects on the markets are rather bleak.” Pig farming, which was recently the only area to achieve a decent result, saw prices decline. “We therefore have to expect declining results there.” Labor-intensive crops such as asparagus, strawberries or wine also put an additional burden on the increase in the minimum wage. “The only bright spot at the moment is the dairy sector.”
Profit slump after record year
After previously good profits, the mood among farmers had already deteriorated. In the 2023/24 financial year, which ended at the end of June, the companies’ results fell to an average of 77,500 euros. This was 29 percent below the record level of the previous financial year. Among other things, investments can also be financed from the profit. Many farms continue to face high costs for energy, crop protection and fertilizer.
Regarding the situation in the fields, Rukwied said that wheat, barley and rapeseed were “looking good at the moment”. Rainfall in autumn and now in winter would have replenished the water reserves in the ground. “In this respect, we have decent starting conditions. But a lot can still happen before the harvest in July.”
Farmers still feel support
There is also tension in the political field. This is also evident at the Green Week agricultural trade fair, which begins this Friday in the capital. Until January 26th, 1,500 exhibitors from almost 60 countries will be presenting themselves in the halls under the radio tower. For Cem Özdemir (Greens), the trade fair will also be a farewell tour as agriculture minister. Almost a month later, the federal election is coming – with agriculture as the campaign topic.
The farmers’ protests from the beginning of 2024 are still remembered – triggered by the end of tax breaks for agricultural diesel, which the then traffic light coalition abruptly announced. “We were able to bring the importance of local food production to the dinner table and to the center of the discussion in a positive way, especially in politically fragile times,” said Rukwied, looking back. “We still feel the support every day.”
“Don’t just look at the last cent”
The farmer president made it clear that the future government should not just make adjustments. “Climate and environmental protection, biodiversity and animal welfare are topics that we will of course continue to work on intensively. But we need a change in people’s minds: out of crisis thinking and into a solution approach.” That means: entrepreneurial freedom, innovation, an end to “bureaucratic shackles”. The Union wants to correct the “cardinal error” in agricultural diesel after the election, as parliamentary group vice-president Steffen Bilger emphasized.
The industry is also interested in supermarket customers at the trade fair, which is a large sampling area. “There needs to be an even stronger commitment from consumers when shopping,” said Rukwied. “I also enjoy the New Year’s Eve fireworks, for example. But when millions of euros are spent on firecrackers, you shouldn’t just look at the last cent when it comes to food – you should also choose local products.”
Investments in stables for 20 years
“We are one of the most sustainable companies in terms of environmental protection and animal welfare. This must also be reflected in higher prices,” argued the farmers’ president. The added value in the food chain through to retail must then be distributed evenly. “It is essential that more reaches us farmers.”
Animal owners needed financing for the change to better conditions and also planning security. “If a farmer invests in a new stable, he must be sure that he will be able to use it for 20 years without further modifications – regardless of whether the requirements change.”
According to the industry, it appears that the organic food business, which was slowed down by high inflation, has continued to gain momentum. In agriculture there is “a cautious willingness to switch” to organic, said Rukwied.
The government’s target of 30 percent organic land set for 2030 is still a long way off. The share continued to rise, but only slightly, to 11.4 percent of the total agricultural area at the end of 2023. “In the end, it is the consumers who decide at the shop counter,” said Rukwied.
dpa
Source: Stern
