The demand for rapeseed and grain is high. The prices for agricultural products are rising, also because of the hunger for energy. Nevertheless, according to the farmers’ association, farmers are still under pressure.
Increased demand and, in some cases, lower harvests drove up the prices for agricultural products in Germany in 2021.
On average for the year, producers were able to push through 8.8 percent higher prices than in 2020, as reported by the Federal Statistical Office. Vegetable products rose in price by 18.3 percent. Cereals and commercial crops such as rapeseed in particular cost more than the average for the previous year.
Nevertheless, farmers are still under pressure, said the President of the German Farmers’ Association, Joachim Rukwied. “The slightly higher producer prices are eaten up by the massive increase in operating costs for energy, feed and fertilizer.” Pig farmers in particular were in a crisis. They’ve been making a loss on every pig and piglet they’ve sold for a long time. “Some have now stopped operating – numerous companies are about to do so,” said Rukwied.
Commercial crops such as rapeseed rose in price by 32.8 percent last year. Rapeseed is primarily used as cooking oil and animal feed. After chemical treatment, the oil can also be used as a fuel in engines. The authorities in Wiesbaden explained that the globally falling supply was countered by high demand, for example for energy production. Lower harvest volumes with high domestic and foreign demand also drove grain prices up (29.3 percent).
Animal products were less expensive at 2.8 percent. The reason given by the statisticians was the sharp decline in producer prices for slaughter pigs (minus 14.2 percent). On the other hand, there were increases for cattle (16.7 percent) and milk (10.1 percent).
Producer prices of agricultural products 22.1 percent higher
At the end of the year, producer prices for agricultural products climbed a total of 22.1 percent compared to December 2020. According to the information, it was the highest increase compared to the same month last year since July 2011. Plant products rose by 28.8 percent. The price increase for rapeseed continued (68.2 percent).
Producer prices for animal products rose by 17.4 percent within a year in December. For the first time since April 2020, slaughter pigs have increased in price (4.5 percent). According to the authority, the reason was a slightly stronger demand in the catering trade, among other things. In December 2020, the corona lockdown dampened demand.
Rising producer prices tend to lead to higher consumer prices.
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.
