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Source: Destatis Federal Statistical Office

Prices for potatoes a good 45% lower than in the previous year, for pork almost 20%

Press release 403 from October 13, 2020

Producer prices of agricultural products, August 2020 –6.8% on the same month last year – 2.5% on the previous month

Producer prices for logging products, August 2020–10.4% on the same month last year – 1.3% on the previous month

WIESBADEN – The Producer prices agricultural products were on average 6.8% lower in August 2020 than in August 2019. Compared to July 2020, they fell by 2.5%. As reported by the Federal Statistical Office (Destatis), the prices for vegetable products fell within a year by a total of 5% and those for animal products by 8%. Compared to July 2020, it was -5.7% and -0.4% respectively.

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Prices for potatoes fell particularly sharply – fruit became more expensive

In August 2020, producer prices for table potatoes were lower than they have been in a long time. In 2018 and 2019, drought and pests caused crop failures, which led to rising prices. For a few months now, producer prices have been falling again. One reason for this is probably that sales of French fries and peeled potatoes, which are mainly used in the catering industry, were low due to the corona. In addition, the new harvest is currently bringing a much larger range to the market. In August 2020 there was a price decrease of 45.4% compared to August 2019.

In contrast, producer prices for fruit rose by 28.7% from August 2019 to August 2020, but have remained almost stable since the previous month with an increase of 0.2%. The spring frost meant that fewer apples could be harvested than expected. This is likely to be an important reason why table apple prices rose 17.9% in August 2020 compared to August 2019. The rise in the price of strawberries is particularly remarkable. They were 48.8% more expensive than a year earlier. Here it stands to reason that the effects of the Corona crisis show up in the form of increased harvest costs due to the loss of seasonal workers and higher costs for health protection.

Pork prices dropped by almost 20%

There were also major price changes for animal production from August 2019 to August 2020. Here, falling demand, partly due to the lack of sales opportunities in the catering industry, may have contributed to a 19.4% decline in pork prices. Swine fever did not appear in German companies until September; their effects on producer prices will therefore probably only be visible at a later point in time.

The opposite trend can be observed for sheep and goats. In August 2020, these were 24.2% more expensive to produce than in the same month of the previous year. Here, however, a price dampening can be determined at the current edge. Compared to July 2020, producer prices only increased by 0.2%.

Drought and pests are causing producer prices for raw wood to fall

For about two years now, the overall producer prices for raw wood have tended to decline. From August 2019 to August 2020 they fell by over 10.4%, compared to July 2020 they fell by 1.3%.

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Persistent drought and the associated pest infestation reduce the quality of logs and logs. In addition, the offer is due to the strong increase in damaged wood harvesting very large. As a result, producer prices fell by 10.6% from August 2019 to August 2020. The prices for spruce, which has been severely damaged by the bark beetle, fell particularly sharply (-13.3%). Producer prices also fell noticeably for pine, which is also affected by the drought, but not quite as much as for spruce. They were 9.8% lower than in the same month of the previous year. However, there has been a slight increase of 1.1% since July 2020. The prices for oak and beech – each excluding trunk wood – also fell compared to the same month of the previous year, albeit more slightly (-2.7% and -3.7% respectively).

These price decreases are also evident in a similar form for industrial wood. This wood, which is generally of less quality, is not used as solid or cut-off wood after felling, but is further processed and used, for example, for paper production. Here prices fell by 13.5% within a year. The prices for coniferous wood fell particularly sharply (-23.1%).

The index of producer prices for agricultural products measures the development of sales prices in agriculture in Germany and thus shows price developments at the first economic level.

The task of the index of producer prices for logging products is to show the price development for raw wood of domestic origin from state forests when sold on the domestic market.

Detailed information on the statistics of the producer price index for agricultural products and the producer price index of logging products (from state forests) is contained in the Subject series 17 row 1The complete annual, financial year and monthly results of the producer prices for agricultural products can be found in the GENESIS-Online database via the Tables 61211-0001 to 61211-0003 are available for logging products (from the state forests) via the Tables 61231-0001 to 61231-0003.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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