Minister Rainer against price increases on food - Germany’s Organic Farming Boom Faces Cost Pressures and Market Realities
Federal Agriculture Minister Alois Rainer has set out plans to boost Germany’s organic farming sector while protecting farmers and consumers from rising costs. His strategy focuses on market-driven growth rather than state-imposed price hikes, as food prices have already surged by over 30 percent since 2020.
Rainer also unveiled an agricultural export plan to strengthen domestic food production amid ongoing economic challenges.
Germany’s organic farming sector has expanded steadily, with 11.5 percent of agricultural land now farmed organically. The country has 35,881 organic farms, accounting for 14.1 percent of all farms in 2024. Projections suggest organic food sales could rise by eight percent by 2025.
Rainer supports this growth but insists it must be driven by real demand rather than government targets. He described the coalition’s goal of 30 percent organic farming by 2030 as ambitious but achievable—if economic conditions allow. At the same time, the minister opposes further state-imposed surcharges like VAT increases, animal welfare levies, or sugar taxes. These measures, he argues, would place an unfair burden on both consumers and farmers. Instead, he wants German farmers to benefit most from the sector’s expansion. Falling farmgate prices for key products have added pressure on producers. In response, the government has introduced relief measures, including agricultural diesel tax rebates and reduced electricity taxes. Rainer stressed the importance of ensuring fair incomes for farmers while keeping food affordable for households. His newly announced export strategy aims to reinforce Germany’s agriculture and food industry during difficult economic times.
Rainer’s approach balances support for organic farming with concerns over rising costs. The government’s relief measures and export strategy seek to stabilise the sector while avoiding additional financial strain on consumers. The focus remains on sustainable growth tied to market demand rather than mandatory targets.
