Germany’s Food Price Crisis Deepens as Farmers and Consumers Lose Out

Retailers and producers are reaping record gains—but at what cost? A new report exposes the widening gap between farm earnings and grocery bills.

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2025 November 21 . 1:14 PM

1 min read

In this image there is a super market, in that super market there are groceries.

Analysis: Retail Giants Too Powerful - Bad for Customers - Germany’s Food Price Crisis Deepens as Farmers and Consumers Lose Out

Germany’s Monopolies Commission has raised concerns over soaring food prices and growing market dominance in the grocery sector. A new report highlights how manufacturers and retailers are profiting at the expense of farmers and consumers. The watchdog is now pushing for stricter controls on mergers and stronger protections for competition.

Food prices in Germany surged by 37% between October 2020 and October 2022. Yet farmers have seen their earnings shrink as retailers and producers take larger cuts. The gap between what farmers earn and what consumers pay has widened, particularly in dairy products.

The Monopolies Commission’s report calls for urgent action to rein in market power and protect consumers. Stricter merger controls and fairer conditions for farmers are central to its proposals. Without intervention, the report suggests, food prices will keep rising while competition continues to shrink.