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    This picture taken on November 13, 2015 shows a placard on a tractor reading Farmers need a fair price - 50 cents per liter milk during a demonstration on the European bridge, between Strasbourg and Kehl, as part of a claim for fair milk prices, lower dairy quotas and a better hold on production

    Agro-Politics: German Farmers Demand Compensation for Lost Russian Market

    © AFP 2019 / FREDERICK FLORIN
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    Farmers in the German region of Saxony continue to suffer huge losses after having been shut out of the Russian market, and are demanding that the local government must compensate them, according to Wolfgang Vogel, head of the Farmers' Association of Saxony.

    Representatives of the agricultural sector have demanded that the government of Saxony must compensate them for losses caused by the anti-Russian sanctions, Wolfgang Vogel, head of the Saxon Farmers' Association, was quoted by RIA Novosti as saying.

    Vogel made the remarks in a letter to Saxony's Prime Minister Stanislaw Tillich, which was published by the agriculture-related news website topagrar.com.

    "Farmers are losing 30 cents for each kilogram of pork and 4 cents for each [liter] of milk, with the total losses already amounting to more than 200 million euros," he said, adding that alternative export markets are yet to be found.

    According to Saxon farmers, the main reason for these losses is the ban on the eastern German state's agricultural exports to Russia.

    Earlier, Joachim Rukvid, president of the German Farmers' Association said in an interview with the German newspaper Deutsche Wirtschafts Nachrichten that the export volume of milk to Russia since August 2014 has decreased from 125 million to eight million euros, the export of meat products fell from 175 million to five million euros and the export of fruits and vegetables dropped from 7 million to 50 thousand euros.

    According to him, the total losses of the German farmers stand at between 600 million and 800 million euros.

    Relations between Russia and the West deteriorated in connection with the situation in Ukraine.

    In late July 2014, the EU and the United States slapped sanctions on several key sectors of the Russian economy, in addition to the previously introduced sanctions against separate Russian individuals and companies. 

    In response, Moscow restricted the import of food products from countries that imposed anti-Russian sanctions. In June 2015, Russia retaliated against the West's extension of sanctions by prolonging the food embargo until August 5, 2016.

    Related:

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    Germany to Back Extension of Economic Sanctions on Russia – Merkel
    Russia, Germany Need to Facilitate Dialogue on Easing Sanctions - Economist
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    markets, farmers, government, losses, ban, sanctions, Saxony, Germany
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