Germany’s organic food market is shrinking. Farmers blame outdated regulations

Credit: Marco Verch via CC
Credit: Marco Verch via CC

Some 35,000 farms in Germany are organically run. But they have been hit particularly hard by record inflation as a fallout of the Russian invasion of Ukraine. For the first time in history, Germany’s market for organic produce has shrunk, with sales down 4.1% by the end of October, according to the German Farmers’ Association (DBV).

Consumers have to pay substantially more for organic produce due to the more labor-intensive production and the requirements of animal-friendly and environmentally-friendly farming. But they have been cutting back for months, giving organic supermarkets a wide berth. Sustainably produced foodstuffs are now mostly bought from discount supermarkets.

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The organic farmer gets 56 cents ($0.61) for a liter of milk from the processing dairy; he would need 14 cents more per liter for things to add up.

The German government wants to increase the proportion of organic farms to 30% by 2030. But critics say this ambitious plan is illusory. They point to changes in consumer preferences, the sluggish progress in converting cultivation areas to organic production, and the lack of support from politicians.

“If society really wants a conversion, then that’s where money must be put,” says [organic farmer] Bernd Schmitz. “If that doesn’t happen, the restructuring can’t take place.”

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