The market for wheat - Germany

1.1 Introduction

The wheat market is divided into several segments, which are distinguished by the different varieties. There are more than 30,000 varieties of wheat, but here are the main varieties found in the world market:

• Common wheat (Triticum aestivum): The most widely grown variety in the world. It has a moderate gluten content.
• Winter wheat (Triticum aestivum ssp. vulgare): Sown in the fall and harvested early the following summer. Hardy variety adapted to temperate and cold climates.
• Durum wheat (Triticum durum): Wheat with firmer texture and high gluten content. It is more resistant to cooking and is therefore widely used in the food industry.

These varieties are used in a variety of applications, from making bread and pasta to feeding animals. Wheat is one of the first plants to be domesticated by humans.

Global wheat production was about 772 million tons in 2020 , with a compound annual growth rate (CAGR) of about 5% from 2022 to 2027. The major wheat producers are China, India, Russia, the United States , and some European countries. Soft wheat production is predominant in Europe and North America, while durum wheat tends to be grown in countries such as Italy, Turkey, and Canada.

In Germany, the wheat market accounts for a significant share of the country's agriculture. Germany is the second largest European wheat producer after France. The strong wheat demand in Germany is mainly driven by the food industry and animal feed production. There is a growing demand for local (i.e., not imported or sourced from neighboring countries) and organic wheat.

• The main companies in this market are established industry giants such as.BayWa AG, one of the market leaders in grain trading in Germany.
• Germany is also one of the countries where food research is advanced. In this context, companies such asKWS SAAT SE & Co. KGaAspecializing in research and production of seeds successfully.
• Another important type of company in this sector are mills such asGoodMills Germany GmbH.

In addition, digitalization in agriculture, such as remote sensing and large-scale data management tools, are changing the way wheat is produced and marketed in Germany, offering new opportunities for the various market players.