Farmers Warn Retailers' Price Cuts Threaten Dairy Industry
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Farmers Warn Retailers’ Price Cuts Threaten Dairy Industry

Farmers’ Association President Accuses Retailers of Undermining Domestic Food Production, Calls for Urgent Policy Shifts

The President of the German Farmers’ Association, Joachim Rukwied, has leveled a sharp critique against the German grocery retail sector, alleging predatory pricing practices are crippling domestic farmers and demanding significant governmental intervention. In an interview with the Mediengruppe Bayern, Rukwied accused supermarkets of aggressively discounting staple goods like butter, a tactic he characterized as “dumping” that directly undermines the livelihoods of producers.

While consumer food prices have risen overall, Rukwied emphasized this has not eased the financial strain on farmers. He pointed to dramatic price declines in butter and milk, alongside a slump in prices for grains and pork, demonstrating a deeply uneven distribution of economic pressures. Rukwied argued the intense price wars prevalent during the Christmas shopping season are being “fought on the backs of our farmers” and insisted such drastic discounts cannot be passed onto producers. He specifically highlighted the devaluation of high-quality, domestically produced butter when sold at excessively low prices, warning it risks long-term damage to the perception and value of German agricultural products.

Looking ahead to 2026, Rukwied outlined a series of critical challenges requiring immediate government attention. These include substantial reductions in bureaucratic burdens and the necessary financing to facilitate the ongoing restructuring and modernization of livestock farming operations – a process he acknowledged as socially desirable but currently lacking adequate support. He further stressed the urgent need for access to effective crop protection products to mitigate the effects of climate change and to restore the competitiveness of German agriculture.

Rukwied’s assessment of the first year of the black-red (conservative-social democratic) coalition government was described as “mixed”. While acknowledging the government’s concessions regarding the reintroduction of agricultural diesel subsidies, the suspension of the material flow balancing system and reductions in electricity taxes, he insisted these measures are insufficient. The combination of high operating costs, burdensome bureaucracy and increasing minimum wages demands a significantly greater level of relief for agricultural enterprises.

Ultimately, Rukwied underscored the necessity of restoring the competitiveness of domestic agriculture within the European context. He directly linked this imperative to a promised paradigm shift in agricultural policy, previously championed by CDU leader Friedrich Merz during the last election campaign. The President’s remarks signal a growing frustration within the agricultural sector and a strong push for a fundamental re-evaluation of government policies impacting food production and the viability of German farming communities.