Germany's farms are failing despite high food prices

Germany's farms are failing despite high food prices

dw.com world

Key Points:

  • Germany's agricultural sector faces challenges as small and medium-sized farms decline, with four large retail chains dominating supply chains and squeezing out farmers, according to the Heinrich Böll Foundation's "Corporate Atlas 2026."
  • Rising food prices have been driven by factors including the COVID-19 pandemic, the war in Ukraine, and volatile energy costs, yet farmers' incomes have not increased correspondingly, highlighting economic pressures on agriculture.
  • Agricultural structures differ between eastern and western Germany, with large farms growing in the East due to historical collectivization, while farm numbers decline sharply in western states such as Bavaria and Schleswig-Holstein.
  • The upcoming Mercosur free trade agreement, eliminating customs duties between the EU and South American countries, raises concerns among German farmers about increased