Tuesday, December 15, 2020
Farmers and traders agree
Domestic producers should benefit more
Because of the corona pandemic and African swine fever, many farmers are struggling with losses. They have therefore been demanding support from the retail chains for weeks. Now both sides have agreed on improvements for domestic producers.
Farmers and grocers in Germany have agreed on improvements in their supply relationships: As the "Land creates connection" initiative announced, it agreed last Friday with representatives from Aldi, Lidl, Kaufland, Edeka and Rewe as well as the food trade association to strengthen local producers, which should be "implemented as quickly as possible". This includes, for example, a uniform label of origin for local foods.
A neutral ombudsman is also planned to settle conflicts between trade and agriculture. In addition, the trading companies had agreed to "work out the services of German agriculture more in the context of their advertising activities".
For dairy farmers and pig farms, "structural solutions" are to be developed in two separate working groups for higher agricultural revenues with higher requirements. The dealers want to participate in a limited aid fund for farmers to alleviate the loss of income due to the corona pandemic and the African swine fever, according to "Land Creates Connection". "Land creates connection" wants to talk to politicians and food processors about participation and advise "how such a fund can be set up in a legally secure manner and designed effectively and purposefully".
Last week, Lidl and the retail group Rewe with the supermarket chains Rewe and Penny increased the prices for pork products. In doing so, they responded to ongoing protests by farmers, who saw themselves in need and complained about low producer prices and what they saw as unfair behavior on the part of the retail chains. Lidl had previously announced that it would be paying out an additional 50 million euros to farmers through the Animal Welfare Initiative.