Drought losses lower than expected for Danish agriculture

Pig farmers bore the brunt of the consequences, but it wasn’t just because of the weather

According to a report from the Department of Food and Resource Economics (IFRO), the drought caused by the roasting temperatures in the summer of 2018 has had less of an impact on Danish agriculture than feared.

The report (here in Danish) found that the agriculture industry endured direct loses of 4.1 billion kroner due to the unseasonably hot weather – 2.3 billion kroner less than what was expected by the Danish Agriculture and Food Council in August last year.

“The key reason for this deviation is that the yield losses were deemed to be higher in August than was the case in the following results from Danmarks Statistik,” the report (here in Danish) found.

READ MORE: Drought could cost Danish agriculture sector billions

Pig prices paramount
According to Jens-Martin Roikjer Bramsen, a researcher and co-author of the report, the summer particularly affected the Danish pig farmers, who were forced to pay high prices for feed because their ability to farm grain on their own land was considerably hampered.

Moreover, an oversupply of pork led to low prices for pigs in 2018 – an impact that had as severe ramifications for the farmers as the weather did, which is a situation that could set the tone for 2019.

“We don’t know what will happen or how many consequences we have yet to see, but we know that the number of bankruptcies has increased. How things will fare in 2019 depends, among other things, on the pig prices. Some farmers might be able to salvage things if the prices go up,” Bramsen told DR Nyheder.

According to the report, increased pig prices would provide Danish agriculture with a 4 billion kroner windfall in 2019.




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