German Farmers' Association: Framework conditions, trends and challenges in agriculture

German Farmers' Association: Framework conditions, trends and challenges in agriculture

According to a report by www.topagrar.com,

The German Farmers' Association publishes the agricultural situation report every year in December. In this press conference, the business results of agricultural businesses are presented, broken down by economic sector. One aspect of this report is the importance of the agricultural sector, food consumption and prices, land use, agricultural structure, agricultural policy, economic situation, markets and agricultural prices.

With regard to the food retail sector (LEH), the report highlights the great importance of LEH in the pricing of agricultural raw materials. German farmers are complaining in the price war against the retail giants Aldi, Edeka, Lidl and Rewe and have been blocking their central warehouses since autumn 2020. The report also sheds light on the implementation of the EU directive against “unfair trading practices in the food supply chain” by federal politicians.

Against the background of rising fertilizer prices and price increases for food, planned agricultural transition measures were also discussed again.

These developments in the food retail sector as well as general price developments for agricultural raw materials can have a significant impact on the market and the financial sector. In particular, ongoing tensions between farmers and food retailers could cause price fluctuations and uncertainties that could impact investment decisions in the agricultural and financial sectors. It remains to be seen whether the LEH's commitments to fair cooperation are sustainable and how the agricultural transition measures will affect food supplies and prices.