German agricultural associations are warning that the war in the Middle East is beginning to take a toll on the nation's farming sector, as skyrocketing costs for fertilizer and fuel threaten the viability of the spring planting season, reported dpa.
Farmers across Germany began field operations this month, but the timing of the turmoil in the energy market has left the industry particularly vulnerable.
Joachim Rukwied, president of the German Farmers' Association (DBV), told dpa that the sudden price spikes for diesel and fertilizer are hitting at a critical juncture.
"These cost increases are simply unsustainable for agriculture," Rukwied told dpa.
According to the association, German farms consume up to one-third of their annual diesel requirement between March and June.
Henrik Wendorff, president of the Farmers' Association in the eastern state of Brandenburg, noted that wholesale prices for agricultural diesel have surged by 25% in just the last two weeks. This represents an increase of about €30 per 100 litres.
Wendorff stated that current daily market rates make "profitability impossible." He further noted that many farmers are unprotected from these swings because they lacked the liquidity to stockpile fuel reserves last year.
Farmers in Germany can claim tax relief on agricultural diesel.
The conflict in Iran continues to drive up global prices for oil, fuel and natural gas. As these costs filter down, calls are being made for Germany’s competition authority to intervene to regulate sharp price increases.
- German farmers
- Financial crisis
- Fuel costs
Source: www.dailyfinland.fi
