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Farmers see 50 million euro offer from Lidl mother as a "consolation"

2020-12-05T18:16:29.278Z


The operator of Lidl and Kaufland wants to pacify a conflict with farmers with 50 million euros. But they are dissatisfied: You lose the same amount every week due to the low prices of the trade.


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Protest by farmers in front of the Lidl central warehouse in Cloppenburg

Photo: Hauke-Christian Dittrich / dpa

In the conflict over fair producer prices, the operator of the supermarket chains Lidl and Kaufland wants to provide 50 million euros to farmers - but does not meet with much approval.

With the money, the Schwarz Group wants to support farmers in particular who are affected by the financial consequences of the corona pandemic and African swine fever.

Following a video conference between trading companies and Federal Agriculture Minister Julia Klöckner (CDU), the Schwarz Group, based in Neckarsulm in Baden-Württemberg, promised millions in aid.

Starting next year, the funds are to be made available through the Animal Welfare Initiative.

With the initiative, the Schwarz Group now wants to work out how the support can be specifically distributed and how a payment should be regulated in detail.

The video conference was set up after demonstrations by farmers in front of central stores in the food retail sector.

After the conversation, Klöckner stated that it was important that there was an “immediate understanding” between trade and agriculture.

"It's about more appreciation for food and about prices that enable our farmers to add value." Specifically, during the talks, she suggested a code of conduct with which the trade defines its own rules for fair cooperation.

The President of the German Farmers' Association, Joachim Rukwied, described the Schwarz Group's offer of millions as a “consolation”.

"That is a nice gesture and a sign of appreciation for the animal welfare initiative," said Rukwied.

"But because of the ongoing price war, our farmers lose this amount almost weekly."

In order to help the farmers in the long term, a clear self-commitment of the trade to get out of the "permanent low price culture" is necessary.

"A ridiculous sum"

Even harsher words came from the farmers' initiative "Land creates connections".

This criticized a "pure marketing campaign" by the Schwarz Group.

Arithmetically, at 50 million euros for each of the nationwide 260,000 companies, only 192.31 euros remained - "a ridiculous sum," the organization explained.

“Land creates connection” also takes a critical view of the fact that the aid is to be paid out through the animal welfare initiative attributable to the farmers' association.

This leads to a further division of the farmers.

The Animal Welfare Initiative, founded in 2015, supports farmers financially in taking steps that go beyond the legal standards for the welfare of their livestock.

Implementation is monitored by the initiative.

Greenpeace welcomed the Schwarz Group's announcement as the “right first step”, but at the same time demanded that other food retailers should follow suit.

In addition, it is not enough "only to tackle the symptoms".

A "system change" is necessary, according to the environmental protection organization.

“The competition for the cheapest food must finally come to an end.” Farmers need fair prices from the trade and long-term purchase agreements for better-made products.

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dab / AFP / dpa

Source: spiegel

All business articles on 2020-12-05

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