BERLIN (dpa-AFX) - Farmers are facing a persistently difficult business situation at the start of the year. "The engine continues to splutter, unfortunately that is the case," said Joachim Rukwied, President of the German Farmers' Association, to the German Press Agency before the Green Week agricultural fair in Berlin. "In the case of cereals, the spluttering has even become more pronounced because the prospects on the markets are rather gloomy."
In the pig farming sector, which was the only sector to have recently achieved a decent result, prices were falling. "Therefore, we have to expect declining results there as well." Labor-intensive crops such as asparagus, strawberries and grapes would be additionally burdened by the increase in the minimum wage. "The only bright spot at the moment is the dairy sector."
Profit slump after record year
In the 2023/24 financial year, which ended in June, farm profits fell to 77,500 euros on average. This was 29 percent below the record level of the previous financial year. Among other things, investments still have to be financed from the result. After a long dry spell, pig and poultry farming had once again recorded an increase.
Commenting on the situation in the fields, Rukwied said, "At the moment, the crops are looking good as far as wheat, barley and rapeseed are concerned." Rainfall in the fall and now in winter has replenished the water supply in the soil. "In this respect, we have decent starting conditions. But a lot can still happen between now and the harvest in July."
The Green Week, the big annual kick-off event for the food industry, begins this Friday. According to the trade fair organizers, 1,500 exhibitors from almost 60 countries will be presenting their products in the halls at the Berlin Exhibition Center until January 26.