Germany Agribusiness Report Q4 2012

Published by: Business Monitor International

Published: Oct. 17, 2012 - 105 Pages


Table of Contents

Executive Summary
SWOT Analysis
Germany Agriculture SWOT
Germany Business Environment SWOT
Supply & Demand Analysis
Germany Grains Outlook
Table: Germany Wheat Production & Consumption, 2011-2016
Table: Germany Corn Production & Consumption, 2011-2016
Table: Germany Barley Production & Consumption, 2011-2016
Table: Germany Wheat Production & Consumption, 2008-2012
Table: Germany Corn Production & Consumption, 2008-2012
Table: Germany Barley Production & Consumption, 2008-2012
Germany Livestock Outlook
Table: Germany Poultry Production & Consumption, 2011-2016
Table: Germany Pork Production & Consumption, 2011-2016
Table: Germany Beef & Veal Production & Consumption, 2011-2016
Table: Germany Poultry Production & Consumption, 2008-2012
Table: Germany Pork Production & Consumption, 2008-2012
Table: Germany Beef & Veal Production & Consumption, 2008-2012
Germany Dairy Outlook
Table: Germany Milk Production & Consumption, 2011-2016
Table: Germany Butter Production & Consumption, 2011-2016
Table: Germany Cheese Production & Consumption, 2011-2016
Table: Germany Milk Production & Consumption, 2008-2012
Table: Germany Butter Production & Consumption, 2008-2012
Table: Germany Cheese Production & Consumption, 2008-2012
Germany Sugar Outlook
Table: Germany Sugar Production & Consumption, 2011-2016
Table: Germany Sugar Production & Consumption, 2008-2012
Commodity Price Analysis
Monthly Softs Update
Cocoa: Momentum Waning
Coffee: Temporary Rally
Cotton: Forming A Base
Palm Oil: Underperforming The Complex
Sugar: Scope For A Moderate Rebound
Table: Select Commodities: Performance & Forecasts
Monthly Grains Update
Wheat: Little Relief From Southern Hemisphere
Corn: Looking The Weakest
Soybean: Prices To Stay Relatively Supported
Rice: Still The Underperformer
Table: Select Commodities: Performance & Forecasts
Upstream Analysis
Europe Fertiliser Outlook
Europe GM Outlook
Europe Machinery Outlook
Downstream Analysis
Food
Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts, 2009-2016
Confectionery
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Prepared Food
Table: Frozen Fruit & Vegetables, 2009-2016
Table: Snack Foods, 2009-2016
Table: Pasta, 2009-2016
Table: Dairy, 2009-2016
Table: Meat, 2009-2016
Table: Fish, 2009-2016
Table: Oils And Fats, 2009-2016
Drink
Soft Drinks And Bottled Water
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Alcoholic Drinks
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Hot Drinks
Table: Hot Drinks Value Sales – Historical Data & Forecasts, 2009-2016
Mass Grocery Retail
Table: MGR Sales Value By Format – Historical Data & Forecasts, 2009-2016
Trade
Table: Food & Drink Trade Balance – Historical Data & Forecasts, 2009-2016
Country Snapshot
Table: Germany’s Population By Age Group, 1990-2020 (‘000)
Table: Germany’s Population By Age Group, 1990-2020 (% of total)
Table: Germany’s Key Population Ratios, 1990-2020
Table: Germany’s Rural And Urban Population, 1990-2020
BMI Forecast Modelling
How We Generate Our Industry Forecasts
y affects this year’s prediction.

Abstract

BMI View: Although the short-term risks facing the German grains and livestock sector have promptedus to slightly downgrade our forecasts for 2012/13, we continue to see strong prospects for growth inthese subsectors over our forecast period to 2016. In the grains sector, we see corn as a significantbeneficiary of Germany’s increasing focus on biofuels and the comparatively higher profitability of thecrop against wheat and barley. We believe poultry will continue to lead the way in the livestock sector asthe healthier image and lower price of the meat will attract more consumers. The sugar industry is set tobenefit from the abolition of the sugar production quotas by 2015.

Key Forecasts

Corn production growth to 2015/16: 10.6% to 5.2mn tonnes. Corn yields have been improvingsignificantly in recent years as an emphasis on increased output has led farmers to adopt moreproductive practices. Biofuels will also be a main driver of crop production over the comingdecade.

Poultry consumption growth to 2016: 6.6% to 1.7mn tonnes. We expect poultry consumptionto gain ground as consumers are attracted to the healthier image and lower price of poultry meat.

Sugar production growth to 2015/16: 28.5% to 4.6mn tonnes. The abolition of the sugarproduction quotas by 2015 is likely to encourage farmers to plant more sugar.

2012 real GDP growth: 0.4%, down from 3% in 2011 and predicted to average 1.7% from 2012until 2016.

Consumer price inflation: 2.0% year-on-year (y-o-y) in 2012, slightly down from 2.3% y-o-yin 2011.

Industry Developments

We expect pork supply in Europe to tighten significantly in the coming years and have revised ouroutlook for production in the EU on the back of data from Eurostat showing the pig herd declining in2011. We forecast pork production in the EU-27 to fall by 2.0% and 1.0% in 2012 and 2013 respectively.The surge in grain prices, especially for wheat, corn and barley, which are used in the EU for feed, isputting significant pressure on farmers’ margins. This is especially the case as retail pork prices have notincreased by much in recent months, while global lean hog prices declined by 17.4% in one day in Auguston the back of oversupply and disease concerns in the US.

Losing Pigs

EU-27 – Pig Herd (‘000 head)

Source: Eurostat

German dairy firm DMK said in August 2012 it is seeking to grow the Sunval brand in Europe and otherinternational markets. Local food manufacturer Sunval’s production facilities, products and saleschannels perfectly match with DMK’s baby food division, which comprises brands such as Milram andHumana. Sunval’s sales increased by 36% y-o-y to EUR37mn (US$45.6mn) in 2011.

US-based sugar producer Imperial Sugar intends to extend its sweetener business and is looking todevelop partnerships with companies in Europe. Imperial Sugar was acquired by NetherlandsbasedLouis Dreyfus Commodities in May 2012, which is expected to provide the backing it needs foran extension in Europe.

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