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Rising energy prices threaten German agricultural sector
Germany
Monday 26 September 2022
FJ
A collapse in German agricultural production cannot be ruled out, according to several associations in the sector which are asking for financial aid from the government (Photo: raiffeisen.de).
In Germany, the very existence of small and medium-sized enterprises in the sector (fruits, vegetables, potatoes) is threatened by the explosion of energy prices according to several associations which are asking for financial aid from the government.
Several associations, including BVEO, the Federal Association of Fruit and Vegetable Producer Organizations, DBV, the German Farmers' Union, DRV, the Union of German Agricultural Cooperatives, ZVG, the Central Union of Horticulture, have sent a joint letter to the Federal Minister for the Economy asking for financial aid to be put in place quickly for companies in these sectors.
For these associations, a collapse of German agricultural production cannot be ruled out, since many agricultural enterprises do not fall within the scope of the current federal government aid programs due to their small and medium size.
Highlighting that fruit, vegetable and potato production is extremely energy intensive due to high quality standards. But the passing on of rising costs is not possible in a market that is increasingly turning to cheaper imported products.
source : bauernverband.de
