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Potatoes have recently become more expensive by more than 60 percent
Photo: Gaetan Bally/ dpa
Producer prices for agricultural products rose more sharply in December than they have in more than ten years.
They increased by an average of 22.1 percent, according to the Federal Statistical Office, the highest price increase compared to the same month last year since July 2011. Plant products rose particularly sharply by 28.8 percent, animal products by 17.4 percent.
High demand from abroad
"The price increase in plant products is partly due to the increase in grain prices since July 2020," the statisticians explained.
In December, these were 40.6 percent above the previous year's level.
The decisive factor for this "remains the high demand from home and abroad with the simultaneous low harvest quantities".
At 68.2 percent, the price of rapeseed rose more than it had since July 2008.
"The upward trend here is mainly due to the worldwide drop in supply combined with high demand, for example for energy production," according to the statisticians.
At the same time, lower harvest volumes from Germany and abroad drove up grain prices.
The Germans must therefore prepare themselves for noticeably rising food prices.
"According to our surveys, more than two-thirds of food manufacturers are planning further price increases in the coming months," said the Ifo Institute's head of economic activity, Timo Wollmershäuser, of the "Welt am Sonntag".
That's more than ever before in reunified Germany.
“So food prices are likely to be a key inflation driver this year.” The institute expects food prices to increase by seven percent compared to 2021.
Pigs are also more expensive again
In the case of producer prices, this development is already extreme in some cases: about 60.2 percent more was recently asked for table potatoes than in the same month last year.
This is mainly attributed to the low harvest quantities due to the weather and a relatively low price level in December 2020: At that time, there was a price collapse of 50.8 percent in the catering trade due to large harvest quantities and a lack of sales opportunities due to Corona.
Cut flowers, in turn, cost almost a quarter more in December 2021 than in December 2020, while vegetables were 3.3 percent cheaper.
Among other things, there were price declines for lettuce with minus 3.0 percent and for cabbage with minus 2.5 percent.
In animal products, for example, the price of milk rose by 22.0 percent.
Prices for slaughter pigs have risen for the first time since April 2020: They were 4.5 percent higher than in December 2020, which is explained by slightly stronger demand from the catering trade, among other things.
Beef prices rose 27.7 percent.
Prices for sheep and goats also continued to rise (+18.4 percent).
On average for 2021, producer prices for agricultural products increased by 8.8 percent.
Apr/Reuters