Average 22% by producer

Grain growers receive smallest share of consumer price

28 February 2017 - Redactie Boerenbusiness

In percentage terms, agricultural entrepreneurs receive less money for their products. This is stated by the German organization 'Rheinische Landwirtschafts-Verband (RLV)'. For a product with a consumer price of 1 euro, only 22,2 cents go to the producer.

In 2015, entrepreneurs in the agricultural sector received about 22 percent of the consumer price when selling domestic foodstuffs. In the 70s this was a much higher percentage, namely 48 percent of the consumer price.

Grain products only yield 5 percent

The share for the agricultural sector has also decreased in the other foodstuffs. In 2015, an entrepreneur received only 38 percent of the consumer price for his milk and dairy products. In 2015, livestock farmers received an average of 18 percent of the consumer price for meat and meat products. The smallest share is for arable farmers. They only receive five percent of the price on bread and grain products.

The RLV states that the agricultural producer prices for baked wheat are only a small cost factor in bread making. However, it is not possible to increase the price of bread by one cent. As a result, the price of maize should double. That is fatal for the entrepreneur.  

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