World meat industry news

• Farming costs soar as energy and fertilizer jump, union says

• Prices to jump in June after renewal of half-year contracts

German consumers should expect to pay more for dairy produce and meat as production costs hit “extraordinary” levels, according to the country’s farmers union.

Ukrainian crisis has boosted key input costs such as fertilizer, which has tripled in price in Germany. Natural gas has also spiked and is starting to feed through into the prices charged in Germany’s food chain. Further jumps are likely in June as half-year contracts between food processors and retailers are renewed, said Udo Hemmerling, deputy secretary general at farmers union DBV.

“This week, dairy processors increased their prices on some goods by 10% due to the extraordinary cost of energy,” Hemmerling said in an interview. “In June, we will see higher prices and then the farmer can get a share.”

German farmers and consumers aren’t alone in feeling the squeeze. The National Farmers Union in the U.K. warned that British dairy farming had become unprofitable as the cost of fuel, fertilizer and animal feed soared.