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News Farmers protest

Minister Özdemir gives German farmers 'saving grace'

15 January 2024 - Klaas van der Horst - 1 reaction

German Agriculture Minister Cem Özdemir has come up with a solution to quell the German farmers' protest: an animal welfare levy with which farmers can pay for the modernization of their stables. Not everyone in German agriculture is happy with it, but refusing becomes difficult.

The German Traffic Light Coalition (Ampel Koalition) of greens, liberals and social democrats wants to stick to the proposed stop on the excise duty exemption for diesel, the direct reason for the farmers' protests. The money to be raised is desperately needed to close gaps in the budget. Yet she also wants to get the protesting farmers off the streets again. She thinks she can achieve this by introducing an animal welfare levy (Tierwohlabgabe), which will make animal products more expensive for consumers (perhaps another policy goal), but livestock farmers will receive more money.

Ideal moment
Such an idea has been discussed many times in previous years, but has not made it until now. This time seems to be the ideal time for it from a coalition point of view and there also seems to be a broader political majority in favor. In addition to the Greens, the FPD and SPD, the CDU would also think it is a good idea.

Strongly opposed to dairy
Not all agricultural organizations have spoken out yet. However, the German Milchindustrieverband (MIV, the German NZO) is firmly against it, because the dairy industry would be faced with €700 million in additional costs per year, while the levy would not apply to imported products. They also point out that many dairy companies are cooperatives, with which farmers have to pay the levy themselves. Furthermore, the levy would make Germany less competitive on the export market. The meat sector also does not seem to be charmed by the plan, but has not yet officially responded.

Amounts
For each agricultural product, the levy would amount to: 40 cents per kilo of meat, 2 cents per liter of milk, the same amount per kilo of eggs and 15 cents per kilo of butter and cheese. The levy should generate a total of €3,6 billion per year. The money should be used to make stables more animal-friendly and spacious. 

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Klaas van der Horst

Klaas van der Horst is a passionate follower of the dairy market and everything related to it. He searches for the news and interprets the developments.

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1 reaction
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Bratwurst 15 January 2024
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/artikelen/10907520/minister-ozdemir-geven-duitse-boeren-goedmaker]Minister Özdemir gives German farmers a 'good maker'[/url]
They already have a Turkish minister there.
I think they should give the economy the final push, it is already completely eroded.
The Bauern protests are not over yet, and in Davos they are clapping.
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