News peasant protests
German protests lead to Lidl price hike
Supermarket chain Lidl is introducing a pork price increase of 1 euro per kilo in Germany. The supplement is paid directly to the pig farmers, according to the group. The initiative is a response to farmers' protests over the past week.
Distribution center after distribution center was blocked by German farmers last week. Various Lidl branches and distribution centers, among others, were unavailable for supplies for hours. The farmers want fair producer prices. The reason for the protests is a letter from major German retail chains to Chancellor Angela Merkel.
In the letter, they complained about a bill from agriculture minister Julia Klöckner that should ensure that farmers and suppliers are better protected against price pressure and unfair trade practices by large retailers. The counter voice of the supermarket chains upset many farmers, which led to the blockades. At least 8 locations in the province of Lower Saxony were blocked with a total of about 200 tractors. In Montabaur, 12 tractors formed a blockade. Locations in Schleswig-Holstein and Mecklenburg-Verpommern also did not escape blockades.
Pork price increase
The frustration among the farmers is great. They want appropriate compensation. Today, December 10, Lidl announced that they are increasing the prices of 10 different types of pork products by 1 euro per kilo. According to the group, the proceeds of the price increase will go directly back to the pig farmers. It is still unclear how that payment will take place, since it is quite difficult to pay the producer directly as a seller of an end product.
The price increase of the products is not the only guideline from Lidl. Last week, Klaus Gehring, chief executive of Schwarz Grüppe, which includes Lidl and Kaufland, announced that the company will donate €2021 million in 50 to the Tierwohl initiative to compensate and support farmers. A nice gesture, but the farmers and various agricultural advocates were critical of this contribution. Calculated with the number of agricultural companies in Germany, it would mean that each company can claim only €200. A bandage that is too small on the wound, according to various interest groups.
Fundamental change
Lidl has shown with the encores that it is willing to implement change. In addition, CEO Gehring indicates that he wants to sit down with other large supermarket chains, agriculture minister Klöckner and other representatives of trade and agriculture. In a letter, he calls on the parties to agree on a joint approach in consultation. Farmers' organization Deutscher Bauernverband (DBV) has been arguing for a fundamental approach to the 'low price culture' for some time now.
Aldi, Edeka and Rewe, among others, have indicated that they want to talk to Lidl. It is striking that the latter has advertised extensively in the past week with a price reduction on pork of 41%. Where Lidl asks €2,71 for 500 grams of minced pork, at Rewe it costs €1,11 per 250 grams (€2,22 per 500 grams), almost a quarter less than Lidl asks.
Jorine Cosse
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