Farmers' share on food expenditures and market margins

For more than 40 years the Institute of Market Analysis estimates market margins, which are defined as the difference between consumer prices and the corresponding producer prices.

Background and Objective

For marketeers as well as for politicans it is important to know to which extent producer prices for agricultural products are linked with consumer prices for food products. Therefore the farmers' share in consumer expenditures for foods are calculated as well as special market spreads for pigmeat and beef.

Target Group

Approach

The market share calculations compare consumer expenditures of selected food items with farmers' turnover of the respective farm products. Quantities are adjusted by by-products and losses.

The market spreads for pigmeat and beef are estimated using the consumer prices of different pieces of meat and the average producer prices.

Preliminary Results

Currently, farmers in Germany receive a quarter of consumer spending on food. Results are annually updated  and published on our website.

Links and Downloads

www.ti.bund.de/en/ma/news-and-service/news/detail/News/producer-prices-for-milk-and-meat-pushed-farmers-share-of-consumer-expenditures-on-food-in-german/

Thünen-Contact

• Peter, Günter Institute of Market Analysis

Involved Thünen-Partners

• Efken, Josef Institute of Market Analysis
• Wendt, Heinz Institute of Market Analysis

Involved external Thünen-Partners

• Bundesanstalt für Landwirtschaft und Ernährung (BLE)
  (Bonn, Deutschland)

Duration

Permanent task 1.2001 - 12.2025

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