The 9 euro train ticket is the feel-good measure of the traffic-light coalition. But the mood will be short-lived. Soon, memories of the 9 euro ticket could be overshadowed by new realities, for example, the 9 euro cabbage.
German farmers are facing a sharp rise in production prices as a result of the energy sanctions on Russia and soaring inflation, which hit 7.9 % in May.
The prices of fertilizer, animal feed, and fuel have increased, leaving producers with significantly higher costs.
Federal Agriculture Minister Cem Özdemir (The Greens/Die Grunen) warned that prices were likely to rise further throughout the year, during his visit to the annual farmers’ conference:
“Unfortunately, a lot is yet to come,” the minister told Rheinische Post newspaper.
”We have to expect rises in autumn and winter because the business must supply itself with expensive energy now, and the price increases will be passed onto consumers.”
According to the German Farmers’ Association (DBV), fertilizer prices have quadrupled and animal feed have doubled.
Much of Europe’s fertilizer comes from Russia, which have been hit by sanctions.
The insurance giant Allianz predicts a 10 percent rise in food prices in Germany, which would mean around an addition €250 per consumer for the year.
Özdemir said the rises were caused by Russia, which he blamed for blocking cereal exports from Ukraine and causing a global food crisis.
Price Crisis: Politics To Blame?
Russia has rejected blame for the rise in food prices.
In an interview on Russian television where he was questioned on the current food shortage, Russian President Vladimir Putin said “we are now seeing attempts to shift the responsibility for the current situation on the global food market and the problems that arise in this market onto Russia”.
“The unfavorable situation in the global food market”, he said, started with the monetary policies of western governments during the CO-VID 19 crisis, and the “short-sighted policy of European countries, especially the European Commission, in the field of energy”, which have “started pushing this ‘green agenda’”.
He said, “Europeans have ignored our urgent requests to maintain long-term gas supply contracts to European countries”, which “has had a negative impact on the European energy market: prices have soared. Russia has absolutely nothing to do with it.”
On the rise in fertilizer prices, President Putin said:
“Eventually the British and then the Americans – the Anglo-Saxons – imposed sanctions on our fertilizers. When the Americans realized what was going on, they lifted the sanctions, but the Europeans did not. You yourself say in conversations with me: Yes, we have to think, we have to do something. But today they only aggravate the situation.”
“This will worsen the situation in the global fertilizer markets, which means that the harvest will be much more modest, which in turn means that prices will only go up – that’s all. This is an absolutely short-sighted, flawed, I would say simply stupid, dead-end policy.”
Putin said Russia was not blocking exports of Ukrainian grain. He blamed Ukraine for mining the ports, and said he guarantees “peaceful and trouble-free passage into international waters” for exports of Ukrainian grain.