Agricultural Policy: New Minister Rules Out State Price Increases on Meat

Wed 30th Apr, 2025

The newly appointed Minister of Agriculture, Alois Rainer from the CSU party, has firmly rejected the idea of increasing value-added tax (VAT) on meat products. This decision aligns with the coalition agreement, which stipulates that there will be no tax increases during this administration.

Previously, the outgoing Minister, Cem Özdemir from the Green Party, expressed support for a slight VAT increase on meat, suggesting a rise from the current reduced rate of seven percent to nine or ten percent. However, this proposal was never enacted, as discussions within the government coalition did not lead to any concrete action.

At Rainer's introduction, CSU leader Markus Söder remarked on the transition from a pro-vegetarian approach to a more traditional stance, signifying a shift towards promoting meat consumption over plant-based diets.

Rainer emphasized his belief in market-driven pricing, stating that it is the market, not the government, that should determine meat prices. He expressed optimism about the potential for meat prices to decrease, indicating a preference for a free market approach rather than governmental intervention.

The new minister also addressed nutrition in schools and daycare centers, advocating for a balanced diet that includes both meat and vegetarian options, as well as fruits and vegetables.

Environmental advocates have criticized Rainer's stance, urging him to reconsider the collective agreements made by the German Farmers' Association and environmental and animal welfare groups, which aim to reduce the consumption and production of animal products. They argue that the ecological and health costs associated with meat production impose significant financial burdens on the economy and taxpayers.

Greenpeace has also raised concerns, highlighting that the environmental and health repercussions of meat production result in billions of euros in costs each year for society, pointing to the need for a reevaluation of agricultural practices.


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