Germany Agribusiness Report Q2 2014
BMI View: Pork producers will face rising costs due to the staggered implementation of minimum wage legislation beginning later this year, while beef production is expected to show weak growth as dairy herds recover. Dairy farmers are still faced with a difficult climate, with many smaller producers expected to be faced with a choice of ceasing operations or joining cooperatives after the removal of quotas in 2015. Even for the big players, milk prices remain perilously low, and it is only the strength of exports that provides a silver lining. Wheat prices are expected to lead farmers to favour increasing acreage of the crop at the expense of corn, barley and sugar.