Agricultural products such as milk and cereals cheaper again

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Barn with dairy cows: price decline for individual product groups

Photo: Cavan Images / imago images / Cavan Images

Throughout Germany, farmers are taking to the streets to fight against the reduction of subsidies. The protests have met with a mixed response, with many critics complaining that farmers were actually earning quite well when inflation drove up prices in 2022. On the other hand, their representatives consider it unfair to look at individual years: the development of incomes would have to be considered over a longer period of time – after all, the high investments in animal welfare-friendly stables and modern agricultural equipment would not pay for themselves overnight.

It is possible that the recent development of producer prices will confirm this argument. After all, there is not much left of the price increase of the year before last. This is because farmers achieved significantly lower prices for their products in Germany in November 2023 than a year earlier. On Monday, the Federal Statistical Office put the decline at eleven percent, with animal products declining more sharply with a minus of 12.3 percent than crop products, for which a price decline of 8.8 percent was noted.

The main reason for the decline is the extremely high price level in the inflation year 2022. Since then, the important product groups cereals and milk in particular have become significantly cheaper again. Compared to October, prices for all agricultural products rose slightly by 0.1 percent.

The Federal Office only mentioned the price development in the first stage of the economy, i.e. when sold by the producer to a first intermediary. This also has an impact on consumer prices, which, however, are not accurately recorded.

Consumers must continue to be prepared for price increases for individual products in the supermarket. In November, apples (+24.1 per cent), cauliflower (+36.7 per cent) and potatoes (18.4 per cent) were significantly more expensive at the producer level than in November 2022, while cereals were a third (-33.4 per cent) cheaper.

The sharp decline in the price of animal products is mainly due to the milk price, which was 29.1 percent lower in November than in the same month last year. Eggs, on the other hand, were 25.2 percent more expensive than a year earlier. The price of pork rose by 10.3 percent.

mik/dpa-AFX