News Germany
'Costs of reforming German livestock farming underestimated'
Livestock farming in Germany must become more animal-friendly and therefore the sector must be reformed. It is a plan that has been on the table for years and the first recommendations were sent to agriculture minister Julia Klöckner at the end of last year. However, new research shows that the costs of reforming German livestock farming may have been greatly underestimated.
Just like in the Netherlands, in Germany the emphasis is also placed in agricultural policy on reforming (intensive) livestock farming. German ministers believe that it can and should be more animal-friendly. This switchover will take place in three phases and will take up to 20 years to complete. It means that by the end of 2040, animals should have more than enough space, among other things, and that there should be unrestricted access to outdoor space or the possibility of grazing.
'Costs greatly underestimated'
Of course, that switch costs a lot of money. The German ministry wants to solve this by means of premiums and investment aid. Most of the reform, about 80% to 90%, is to be financed by the government (plans say). According to the committee responsible for elaborating the plans from 2025, this concerns an annual amount of €1,2 billion, from 2030 that will be €2,4 billion and in 2040 even €3,6 billion must be earmarked for a maximum of 90% of the investment costs of the conversion.
However, that estimate is incorrect, the newspaper Neue Osnabrücker Zeitung (NOZ) writes. "The costs of reforming the livestock sector are greatly underestimated," NOZ writes. The newspaper has spoken to several experts, who estimate the cost framework for the reform at €3 billion per year initially and at €4 billion per year over time. "That is much higher than the budget of €1,2 billion to €3,6 billion per year."
Costs passed on to consumers
In order to be able to compensate for these high costs, the much-discussed 'meat tax' has been reintroduced. There are two options for this. The first is the excise tax on meat. This includes €0,40 per kilo of meat, approximately €0,02 per kilo of milk and approximately €0,15 for a kilo of cheese, butter and/or milk powder. According to the Commission, this will generate tax revenues roughly equivalent to the €3,6 million needed. Incidentally, various insiders indicate that this may be in violation of European rights.
An increase in the VAT on meat from 7% to 19%, the second proposal, therefore also seems more obvious. Although insiders indicate that this can have a major impact on household expenditure, especially among the poorer population groups. However, Klöckner is firm: "Society wants more animal welfare. That is not free."
Kimberly Baker
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