Food prices remain constant despite drought summer
Around three billion euros loss in agriculture
Due to the dry summer, farmers have to invest more and more money in fertilizers, plant products and energy. However, they do not pass on the costs they incur to consumers. “There is no significant increase in food prices due to the drought” said Joachim Rukwied, President of the German Farmers’ Association. Agriculture, on the other hand, is suffering from the situation. The total damage is expected to amount to around three billion euros.
And even now, a few months after the heat period, the farmers are still struggling with the consequences. For example, the transport of chemicals is becoming more expensive because they cannot be transported because of the low water level. As a result, the prices for fertilizers and pesticides will also rise.
To ensure that everything is covered in the event of another drought, farmers are currently discussing possible insurance against drought damage with politicians and the insurance industry. However, a result has not yet been reached. Another option for protection would be drought-resistant crops. About 8000 farms allegedly applied for drought aid from the state.
Until 2017/2018, the main agricultural businesses were able to increase their results by a fifth and ended the year at around 65,200 euros. The financial year is calculated until 30 June, which is why the effects of drought are not included in the figure.