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Producer prices: milk, potatoes, cereals significantly more expensive

2022-05-12T08:06:28.247Z


Prices for agricultural products rose by 34.7 percent in March compared to the same month last year. This is the highest increase since the survey began in 1961. The cause is the war in Ukraine - and the consequences of the corona crisis.


Enlarge image

Irrigation of a potato field: the tubers have become drastically expensive

Photo: Fabian Strauch / dpa

Producers of agricultural products have raised their prices at a record pace in the first month after the start of the war in Ukraine.

They rose by an average of 34.7 percent in March, as reported by the Federal Statistical Office.

"This is the highest price increase compared to a month in the previous year since the survey began in 1961," it said.

"Compared to February 2022 alone, prices rose by 15.1 percent."

Plant products increased in price particularly sharply at 42.1 percent, animal products at 29.5 percent somewhat less strongly.

The record price increase is partly due to grain prices

, which have been skyrocketing since July 2020

: In March, they were 70.2 percent higher than in the same month last year.

"The decisive factor behind the enormous price increase in grain is the shortage of supply as a result of the war in Ukraine," the statisticians explained.

"As a result, the already tense situation on the world market with high demand at home and abroad has once again become significantly worse."

Potato growers had to cope with a price collapse in 2021

91.7 percent more was required

for

ware potatoes .

This is mainly due to the low harvest quantities due to the weather and a relatively low price level in March 2021: There was a large harvest at that time, and demand from the catering industry also fell due to the corona crisis.

At the time, this led to a price collapse of more than 50 percent.

Producer prices for

fruit

, on the other hand, fell by 12.4 percent this time, with dessert apples becoming cheaper by 8.4 percent.

The prices for the commercial

crop rapeseed

rose by 70.1 percent.

This surcharge is mainly due to the scarce supply situation combined with high demand, for example for the production of biogas or the use of rapeseed as fuel (biodiesel).

In animal products, for example, the price of

milk

rose very sharply by 33.3 percent.

"The main reason for this is still a scarce supply of raw milk," according to the statisticians.

For slaughter pigs, prices rose by 21.1 percent and for cattle by 47.5 percent.

Producer prices describe the payment excluding sales tax that farmers receive for their products at the first level of trade.

Rising producer prices tend to lead to higher consumer prices.

The German Farmers' Association expects food to become even more expensive because of the war in Ukraine.

Consumers are already clearly feeling the effects of inflation when it comes to groceries.

According to data from the Federal Statistical Office, in April food and energy prices rose at an above-average rate.

In view of the high inflation, SPD leader Lars Klingbeil has promised further relief for the citizens in addition to the measures already planned.

Inflation is rising, it is uncertain how energy prices will develop, Klingbeil told RTL.

"That's why I'm completely clear that we won't stop, that we'll take a close look at which areas we need to relieve."

According to economists, consumers will have to be prepared for inflation rates of more than 7 percent in the coming months.

In April, consumer prices were 7.4 percent above the level of the same month last year.

This Thursday, the Bundestag will decide on a number of relief measures, including an increase in the basic tax allowance and one-off payments for families and recipients of state social benefits.

mmq/Reuters/dpa

Source: spiegel

All business articles on 2022-05-12

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