Germany’s Meat Crisis: What's Behind the Decline?

Germany’s meat production has been experiencing a significant decline in recent years, driven by a combination of economic, regulatory, and environmental factors.

In 2023, total meat production dropped to 6.8 million tonnes, marking the seventh consecutive year of decline. This reduction primarily affected pork and beef production, while poultry remained more stable. Several key issues contribute to this downward trend:

1. Rising Costs and Economic Pressures: High costs for raw materials, energy, and labor are placing a heavy burden on the meat industry. Medium-sized companies in the sector are struggling to maintain profitability due to rising wages and inflation, which have also impacted consumer purchasing power, further reducing demand for meat products​.
2. Regulatory Challenges: Germany’s meat industry is also grappling with increased regulatory scrutiny. Laws aimed at improving animal welfare, such as stricter husbandry regulations and mandatory animal welfare labeling, have increased the operational costs for farmers. These regulations, combined with political uncertainty, are making it difficult for producers to compete and sustain operations​.
3. Impact of African Swine Fever (ASF): Another major factor is the outbreak of African swine fever, which has severely affected pork production and exports. Many countries have imposed restrictions on importing German pork due to ASF outbreaks, contributing to reduced demand and further straining the industry​.
4. Declining Meat Consumption: Consumer preferences are also shifting, with Germans increasingly turning away from meat. Per capita meat consumption has been on a steady decline for decades, with significant reductions in pork and beef consumption, while poultry remains the only segment with increasing demand. This long-term trend is further exacerbating the supply and demand imbalances in the sector​.

In conclusion, Germany’s meat industry is facing a multifaceted crisis driven by economic strains, regulatory pressures, disease outbreaks, and changing consumer habits. The industry will need to navigate these challenges by potentially restructuring and adapting to new consumer preferences and regulatory environments.

Sources:

• https://www.destatis.de/EN/Press/2023/02/PE23_051_413.html
• https://www.pig333.com/latest_swine_news/germany-meat-production-declines-due-to-overregulation_20315/
• https://euromeatnews.com/Article-Germanys-meat-production,-consumption,-and-exports-are-falling/4670
• https://www.destatis.de/EN/Themes/Economic-Sectors-Enterprises/Agriculture-Forestry-Fisheries/Animals-Animal-Production/_node.html
• https://www.efeedlink.com/contents/05-06-2024/5a07d740-990e-4161-9b3f-ba877288f46f-0009.html
• https://www.mintecglobal.com/top-stories/the-german-pork-herd-continues-to-decline-and-prices-remain-elevated
• https://agridata.ec.europa.eu/extensions/DashboardPigmeat/PigmeatProduction.html