Thursday, December 9th, 2021
Farmers’ Association takes stock
The situation with pig farmers is “zappenduster”
The concerns of German pig farmers are manifold. On the one hand, they are feeling the after-effects of the massive corona outbreaks in slaughterhouses. On the other hand, they are attacked by African swine fever. The farmers’ association therefore rates your economic situation extremely poorly.
Expensive energy, fluctuating prices, unanswered questions in the political arena: German farmers are preparing for the difficult conditions that will continue. Massive losses among pig farmers significantly depressed corporate profits in the entire industry in the 2020/21 financial year, which ended at the end of June – by an average of 15 percent to 52,100 euros, according to the farmers’ association in Berlin. However, cattle farmers and organic farmers were even able to grow.
The food industry is looking forward to more specific announcements from the new Federal Minister, Cem Özdemir of the Greens. “The economic situation is still tense,” said farmers’ president Joachim Rukwied. With pig farmers it even looks “zappenduster”. With them, profits fell by an average of 69 percent to 36,800 euros. It is now hard to find in the books that up to a million pigs were temporarily stuck in the stables due to corona outbreaks in slaughterhouses. And after the appearance of African swine fever in Germany, exports to important sales markets such as China collapsed.
Before that, the pig farmers had been able to benefit from an export boom. Rukwied explained that the situation in terms of slaughter capacities has eased considerably in the meantime. The prices are simply “catastrophic” and would bring pig farmers 30 to 50 euros per animal in loss. It is therefore also important that companies in financial difficulties continue to be supported with state corona aid.
In contrast, the average results for cattle and dairy farmers improved. And for milk, the prices for farmers would also be stable above the previous year’s level at 38 cents per kilogram. In organic farms, profits increased by nine percent to 76,000 euros. Organic farming has proven to be interesting and future-proof for many farms, said the farmer’s president. The market will also determine whether more companies switch – for example when organic changes in canteens and canteens boost demand. The Ampel-Coalition has raised the target for organic farming: by 2030 from 20 to 30 percent of the agricultural area. The current status is 10.3 percent.
Özdemir sees himself as the “top animal rights activist”
There are high expectations with a view to the upcoming major reorganization of the animal husbandry. New Minister Özdemir has already assured support for the change to more animal welfare, environmental and climate protection. “I see myself as the top lawyer for farmers,” he announced when he took office. “At the same time, I am also the top animal rights activist in this country.” The aim is that farms do not have to be left with billions in investments alone. Grants are needed and, in the end, higher prices at the shop counter, said Rukwied. The coalition agreement is vague about the specific financing model.
To what extent the economic situation will recover is uncertain, the association said. On the one hand, there are better prices, for example for rapeseed and grain. On the other hand, feed, energy, machine diesel and, acutely, nitrogen fertilizers have become dramatically more expensive. And with the prices that can be achieved, there is one thing: Currently up to 300 euros per ton of wheat are included. In some cases, however, contracts had already been concluded in the spring at the level of 180 euros. Rukwied prefers not to make any forecasts, a lot depends on market developments in the first half of 2022.
In general, after 16 years with Union ministers, the farmers’ association is relying on a “good exchange” with the new head of the green department, who is also a pragmatist. Özdemir has just lost a good opportunity to introduce himself on a big stage: The industry get-together in the exhibition halls of the “Green Week” in Berlin in January was canceled again due to the corona pandemic.