World Grain - May 2019 - 18

COUNTRY FOCUS

FOCUS ON

GERMANY
Country's grain producers trying
to recover from dry 2018
by Chris Lyddon

The focus of Germany's economy is on industrial production, but the country is also one of Europe's leading
producers of grains and oilseeds.
As a Member State of the European Union, Germany's
overall farm policy is set under the E.U.'s Common Agricultural Policy (CAP), in the direction of which German
Agriculture Ministers and German Members of the European Parliament play a role. The CAP is set for a 2020
reform that will give individual countries a bigger role in
deciding how strategic objectives are applied domestically. Germany's production of grain and oilseeds was
affected dramatically by dry weather in 2018, something
which, having hit plantings as well as the old crop, will
also mean lower production in 2019.
The International Grains Council (IGC) puts Germany's
total grains production at 45.7 million tonnes in 2019-20,
up from 37.9 million the year before. Wheat production
for 2019-20 is put at 24.2 million tonnes, up from 20.3
million the year before. Germany's corn crop in
2019-20 is put at 4.3 million tonnes, up
from 3.3 million the previous year.
The barley crop is put at 11 million tonnes, up from 9.6 million
the year before. Production
of oats is forecast at an unchanged 600,000 tonnes.
Rye production is forecast
at 3.2 million tonnes, up
1 million tonnes from a
year ago.
Forecast sharp rises for
UHÀHFWDSDUWLFXlarly poor 2018-19 crop,
because of dry conditions.
The German farmers' union, DBV, which put the crop
at 35.6 million tonnes in total,
issued a statement at the time
18

KEY FACTS
Capital: Berlin
Population: 80,457,737 (July 2018 est.)
Religions: Roman Catholic 28.2%, Protestant 26%, Muslim 5%, Orthodox 1.9%, other Christian 1.1%, other .9%,
none 37% (2017 est.).
Location: Central Europe, bordering the Baltic Sea and
the North Sea, between The Netherlands and Poland, south
of Denmark.
Government: Federal parliamentary republic. Chief of
state: President Frank-Walter Steinmeier (since March 19,
2017); head of government: Chancellor Angela Merkel
(since Nov. 22, 2005).
Economy: The German economy - the fifth largest
economy in the world in PPP terms and Europe's largest
- is a leading exporter of machinery, vehicles, chemicals
and household equipment. Germany benefits from a highly
skilled labor force, but, like its Western European neighbors, faces significant demographic challenges to sustained
long-term growth. Low fertility rates and a large increase
in net immigration are increasing pressure on the country's
social welfare system and necessitate structural reforms.
The German government introduced a minimum wage
in 2015 that increased to $9.79 (8.84 euros) in January
2017. Stimulus and stabilization efforts initiated in 2008
and 2009 and tax cuts introduced in Chancellor Angela
Merkel's second term increased Germany's total budget
deficit to 4.1% in 2010, but slower spending and higher
tax revenues reduced the deficit to 0.8% in 2011, and in
2017 Germany reached a budget surplus of 0.7%. A constitutional amendment approved in 2009 limits the federal
government to structural deficits of no more than 0.35% of
GDP per annum as of 2016, though the target was already
reached in 2012. Following the March 2011 Fukushima
nuclear disaster, Chancellor Angela Merkel announced in
May 2011 that eight of the country's 17 nuclear reactors
would be shut down immediately and the remaining plants
would close by 2022. Germany plans to replace nuclear
power largely with renewable energy, which accounted for
29.5% of gross electricity consumption in 2016, up from
9% in 2000. Before the shutdown of the eight reactors,
Germany relied on nuclear power for 23% of its electricity
generating capacity and 46% of its base-load electricity
production. The German economy suffers from low levels
of investment, and a government plan to invest 15 billion
euros during 2016-18, largely in infrastructure, is intended
to spur needed private investment. Domestic consumption,
investment, and exports are likely to drive German GDP
growth in 2018, and the country's budget and trade surpluses are likely to remain high.
GDP per capita: $50,800 (2017 est.); inflation: 1.7%
(2017 est.) ; unemployment: 3.8% (2017 est.).
Currency: Euros (EUR): 0.89 euros equal 1 U.S. dollar
(April 22, 2019).
Exports: $1.434 trillion (2017 est.): motor vehicles, machinery, chemicals, computer and electronic products, electrical equipment, pharmaceuticals, metals, transport equipment, foodstuffs, textiles, rubber and plastic products.
Imports: $1.135 trillion (2017 est.): machinery, data processing equipment, vehicles, chemicals, oil and gas, metals,
electric equipment, pharmaceuticals, foodstuffs, agricultural products.
Agriculture: 0.7% (2017 est.) of GDP and 1.4% of the
labor force.
Internet: Code: .de; 72,365,643 (July 2016 est.) users.
Source: CIA World Factbook

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