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Germany Agribusiness Report Q1 2014

Germany agriculture affected by recent changes to EU policy regarding biofuels

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2014-03-17 05:41:02 - Germany Agribusiness Report Q1 2014 - a new market research report on

Hot dry weather at the end of the growing season has reduced output of corn and sugar beet, but farmers have also cut back on acreage devoted to these plants. Changes to EU policy on the use of food crops as biofuels may prevent sugar from bouncing back with the end of quotas in 2017 and could also further reduce corn production. Dairy continues to be the most attractive sector for investment thanks to strong export demand. The livestock sector faces more challenging conditions as pork producers in particular will struggle to adjust to the incoming minimum wage and the enforcement of welfare legislation.

Milk production growth to 2017: 6.3% to 31.6mn tonnes. Modest growth will be supported by export demand



and higher prices and held back by sluggish domestic consumption.

Pork consumption growth to 2017: down 1.5% to 4.3mn tonnes. Demand for pork has been on a downward trajectory since 2007 and rising production costs will make matters worse.

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