Agricultural trader baywa: drought in europe makes wheat much more expensive

Agricultural trader baywa: drought in europe makes wheat much more expensive

This was reported by klaus josef lutz, chairman of the board of the largest european agricultural trader baywa. In addition, the global harvest is expected to be lower than the year before.

Baywa expects around 736 million tons of wheat to be harvested around the world – a drop of three percent.

Lutz did not say in munich what this means for retailers. Experience shows that rising wheat producer prices have a delayed effect on the price of bread and other baked goods.

U.S. President donald trump’s aggressive trade policy has obvious unpleasant consequences for U.S. Soy farmers in the form of falling producer prices.

Soybeans are one of the most important raw materials for animal feed; china has imposed punitive tariffs on US soybeans in retaliation for trump’s tariffs. This is why baywa – according to lutz, the world’s largest exporter of soybeans – can now buy comparatively cheaply in the U.S.

Baywa itself had to contend with a different effect in the first half of the year: pre-tax profit fell by more than half to 32 million euros compared with the previous year, because business with renewable energies was poor at the beginning of the year. Sales, however, rose by just under three percent to 8.3 billion euros. Lutz is optimistic for the rest of the year.

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