Farmers in Germany sound the alarm as high prices fail to save farms
Farmers in Germany are warning of a growing crisis as food prices continue to rise while farm incomes remain stagnant, forcing many small and medium-sized farms to close despite strong consumer demand.
With the launch of Green Week Berlin, the world's largest international agricultural fair, in its centenary edition, agricultural issues have returned to the forefront. A new study from the Heinrich Böll Foundation reveals that Germany is experiencing a continuous decline in the number of small farms due to structural pressures in food supply chains.
The study shows that the markets for milk, meat, and vegetables are dominated by only four major retail chains, which gives stores significant power to set prices. This concentration has narrowed farmers' profit margins, even though consumers are paying higher prices. Surveys indicate that 68% of Germans feel the rising cost of living primarily through food prices.
Political officials acknowledge this flaw. Matthias Miersch stated that food prices have risen by 35% since 2020, due to the COVID-19 pandemic and Russia's war on Ukraine, without this being reflected in farmers' incomes. The study also points to fluctuations in energy prices and the fragility of global supply chains as additional key factors.
Clear regional differences are evident in the agricultural sector. In East Germany, particularly in Mecklenburg-Western Pomerania and Saxony, the number of large farms has increased significantly since 2010, influenced by the agricultural structures inherited from the GDR era. In contrast, the number of farms has sharply declined in western states such as Bavaria and Schleswig-Holstein.
Pressure may increase with the free trade agreement between the European Union and Mercosur, which includes Brazil, Argentina, Paraguay, and Uruguay. While the EU hopes to increase its industrial exports, German farmers fear competition from cheaper agricultural products and warn of undermining EU environmental standards and animal welfare standards.
The debate over ways to protect consumers and farmers together has intensified. The Social Democratic Party proposed a food basket at reduced prices for basic goods, but Agriculture Minister Alois Reiner rejected the idea. Andreas Stiebfon argued that lowering food prices does not address poverty, instead calling for an improvement in incomes.
Despite these concerns, Jens Spahn expressed his optimism, confirming that Germany still offers some of the best types of food, produced by farmers at the highest level of training and at relatively low prices. At the same time, Green Week Berlin continues until January 25, showcasing global food trends, sustainability, and agricultural innovation amid growing anxiety among farmers.