German farmers are preparing for the difficult conditions that will continue

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.