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Economic factors rated differently globally

Chart of the month (July/2018)

Agricultural exports, interest rates and prices for agricultural products - these parameters determine the economic conditions for farmers worldwide. The current graphic of the month of DLG Agrifuture Insights shows how farmers from different countries assess the impact on economic conditions.

Almost 70 percent of farmers in South Africa and France believe that agricultural exports are currently having a favorable impact on their economic environment. This is the opinion of every second surveyed farmer in Brazil and almost 40 percent of the surveyed farm managers in Germany. The farmers in France returned to the world market with larger quantities after the poor harvest in 2016 with the harvest in 2017 and have benefited from an increase in the number of exports.

For farmers in South Africa, the export of poultry and pig products is very important. The farmers there profit from the increasing demand in southern Africa. This ensures growing exports and also enables single-company growth. So the growing export volumes have a positive effect on the economic conditions of farmers in South Africa.

Farmers in Germany and France are taking a positive view of the current level of interest rates. Because the ECB's interest rate policy allows investments to be financed cheaply. By contrast, significantly fewer farmers in Brazil and South Africa see interest rates as a positive factor in the economic environment. Because interest rates are high in emerging markets and credit maturities are short. This makes the long-term financing of investments much more difficult.

The surveyed farmers are less positive about the current price level for cereals, pigs and milk. Only a small proportion of farmers surveyed see current prices as a positive factor for economic development. One exception is grain prices, according to farmers in France. And just under every second farmer in South Africa believes that milk prices have a positive effect on economic development. A currently rather limited supply of milk due to drought has led to rising prices and thus a satisfactory price level for the majority of farmers.

DLG-Agrifuture Insights is the new DLG knowledge brand and platform for international trend analysis in the agricultural sector. It examines the business environment in agriculture and agribusiness through a global panel of 1,650 leading farmers in 11 countries. Every month, DLG-Agrifuture Insights publishes a "Chart of the Month" from the extensive range of development trends in the international agricultural markets.