German wine producers are voicing concerns that the planned increase in the national minimum wage poses a significant threat to the viability of vineyards located on steep slopes. Matthias Dempfle, deputy managing director of the German Winegrowers’ Association (DWV), told the Redaktionsnetzwerk Deutschland network that a considerable reduction in cultivated vineyard area is now considered likely, particularly in these challenging terrains.
The apprehension surrounding a decline in acreage predates the recent decision by the Minimum Wage Commission to raise the minimum wage to €14.60 by 2027; however, the increase is expected to accelerate the trend. Vineyards on steep slopes are particularly vulnerable due to the intensive labor required for planting, tending and harvesting.
German winemakers are already facing considerable pressure from falling sales figures, depressed prices for bottled wine and substantially rising production costs. This economically strained environment makes it difficult for businesses to absorb increased labor expenses without jeopardizing their existence or reducing employment.
While consumers are not expected to see immediate price changes, German wineries are facing intense competitive pressure. Lower minimum wages in European and non-European markets are creating a disadvantage for German producers. This situation means that increased labor costs are unlikely to be fully passed on to distributors, processing companies, or consumers, further squeezing profit margins.
