The ongoing drought is increasingly causing problems for German farmers, grain growers complain about the lack of rain. And it is not only Germany that is concerned about agricultural products: The UN fears constantly high prices – in the coming decade.
The situation with wheat is particularly critical. The head of the agricultural and plant production department at the German Farmers' Association, Jens Rademacher, told the BILD newspaper, "We are in a critical phase."In many areas it has not rained properly for four weeks."Record crop yields are no longer to be expected this year," Rademacher told the paper. However, it is still too early to ame that there will be massive crop failures. If there is a lot of rainfall in the next few days, a good harvest can still be expected, he said.
OECD/FAO report: Food prices remain ho Prices for agricultural products are expected to remain higher than average over the next decade. That's the conclusion of the U.N. Food and Agriculture Organization (FAO) and the Organization for Economic Development and Cooperation (OECD) in a report presented Thursday in Paris. Although the current record levels of food prices would probably not be reached again. However, increased price fluctuations are to be expected in return.Both organizations stressed that to combat the current food crisis, agricultural production and yields in developing countries must be significantly improved. This will require an opening of agricultural markets, said OECD Secretary-General Angel GurrIa bi the presentation of the so-called "Agricultural Outlook" by the OECD and FAO. Governments could also do more to promote economic growth and development in poor countries in order to increase the purchasing power of the poorest people.
Around 862 million people suffer from hunger FAO Director-General Jacques Diouf called on the international community to work to ensure that high food prices do not hit the hungry and poor even harder: "Today, some 862 million people suffer from hunger and malnutrition – this underscores the importance of new investments in agriculture." The ie must therefore be brought back on the agenda of development cooperation, he said.According to the report, prices for rice and sugar are expected to rise by less than 10 percent over the next decade, while those for wheat are expected to rise by nearly 20 percent, butter by 30 percent and vegetable oils by about 50 percent. Increased fluctuations are to be expected because stocks are expected to remain low. Increasing speculation on food as well as climate change could also have a negative impact on price stability.
Growing demand for biofuels According to the Agricultural Outlook, one important reason for the price increases in the past two years was the persistent drought in many grain-producing regions of the world. In the long term, high oil prices, changes in eating habits, urbanization and population growth will continue to lead to higher food prices in the future.As a further factor, FAO and OECD point out the growing demand for biofuels. Between 2000 and 2007, he said, ethanol production had already tripled. According to the report, by 2017 it will double again to127 billion liters annually. Biodiesel production will also increase from eleven billion liters today to 24 billion liters in 2017.