News Organic
Switching less attractive for German farmers
The prices that organic farmers receive for their products will have risen significantly less quickly in 2022 than is the case for conventional products. As a result, the economic incentive for German farmers to switch has decreased over the past year, the Deutscher Bauernverband writes in its annual report. This while the German government has the ambition to increase the share of organic acreage to 2030% by 30, almost tripling.
At the end of 2021, there were 36.300 organic farms (14%) in Germany with a total area of more than 1,8 million hectares. In 2011 this was still 7,5% of the farms. The share of organic agricultural land in the total area has increased to 2021% in 10,9 (10,3% a year earlier). In 2011 this was still 6,1%. The German government wants 2030% of agricultural land to be farmed organically by 30. Germany is very ambitious with this, the goal of the European Commission is a quarter of organic agricultural area in the EU. The Netherlands is aiming for 'only' 15%, but it should be added that according to CBS figures, 2021% of the acreage here was organic in 4.
In 2022, the situation is completely different
At the end of last year there was still quite a lot of interest in conversion among German farmers. According to the German agricultural economic barometer of December 2021, 20% of German farmers were interested, especially in southern Germany. The farmers surveyed mentioned reasonable producer prices, assured purchase and sufficient financial resources as important conditions. Figures for this year are not known, but whether the enthusiasm is still so great remains to be seen.
Due to the high food prices, caused by the war in the Ukraine and the energy crisis, consumers are opting for cheaper products and discounters. "This is in stark contrast to the record year 2020, when the sale of organic food rose sharply as an indirect result of corona," said the farmers' union. "Consumers could hardly travel during the corona period, restaurants closed and the budget for groceries was correspondingly high. The situation will be completely different in 2022."
Due to a lower yield and a higher workload, organic farmers depend on higher producer prices and organic premiums to survive economically, according to the farmers' union. During the usually two-year transition phase of a farm from conventional to organic farming, there are also conversion costs that are only partially offset by government organic subsidies, which vary in size in the German federal states. In 2021, a total of €392 million was spent in Germany from funds from the European Union, the federal government and the Länder for the promotion of organic farming.
Economic incentive
Producer prices for organic food have risen significantly less in 2022 than for conventional food, according to the Deutscher Bauernverband. "The price differences between conventional and organic goods have narrowed in almost all areas. The economic incentive for conventional farmers to switch to organic farming has therefore decreased at the moment."
Linda van Eekeres
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