The decrease was slightly smaller than in previous years but has now reached a historic low. A quarter of the consumed meat in Germany consists of poultry meat, mainly chicken. This was eaten significantly more last year: from 12.2 to 13.1 kilograms.
In Germany, there has been an ongoing societal debate for years about modernizing agriculture and livestock farming. Much attention is focused on the large amounts of animal manure that must be spread on grassland, and on the working conditions and quality in German slaughterhouses. About two years ago, a group of experts from the so-called Borchert Commission presented a thorough plan regarding these issues.
An important component of this plan is improving animal welfare in pig farming and the dairy sector. To achieve this, barns will need to be expanded, partly (in some way) co-financed by the government. There is still no political consensus in Germany on this matter.
The Future Commission for Agriculture (ZKL) believes that government support should be funded by an increase in VAT on animal-based food products. The financial experts of the Borchert Commission in Berlin conveyed this in advice to Chancellor Olaf Scholz.
In an earlier issued report on a drastic agricultural transition, three possible co-payment options were mentioned: the VAT increase on meat and dairy, a new meat tax, or a subsidy from the national treasury. During the 2021 election campaigns, the currently governing center-left coalition parties (SPD, Greens, and FDP) could not agree on this.
The core issue was (and still is) the question of who ultimately should pay that subsidy: the stable owner themselves, the meat consumer, or all taxpayers. The financial experts now state that raising the VAT (which was lowered two years ago) is the simplest and most practical solution.
The German farmers’ association DBV opposes this: higher VAT or a new separate meat tax would make meat more expensive for consumers and could lead to reduced sales. DBV chairman Joachim Rukwied advocated for payment from general funds via taxation.